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Hollinger Corp. 
P H 8.5 



HB 236 
• U5 A5 
1920 
Copy 1 



FEDERAL TRADE COMMISSION 



DIGEST OF REPLIES 

IN RESPONSE TO AN INQUIRY OF THE 

FEDERAL TRADE COMMISSION 

RELATIVE TO THE PRACTICE OF 

GIVING GUARANTEE AGAINST 

PRICE DECLINE 



MAY 27, 1920 






n 




WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1920 



Victor Mubdock, Chairman. 
Huston Thompson. 
William B. Colvee. 
Nelson B. Gaskill. 
John Gabland Pollabd. 

J. P. Yodeb, Secretary. 



r>. *t B. 

AUG 10 ,y 20 



■Us A5 



TABLE OF CONTENTS. 



Page. 

Questionnaire 6 

Alphabetical list of individuals, firms, corporations, and commercial and 

trade associations " CI 

REPLIES FAVORING GUARANTEE AGAINST PRICE 
DECLINE. 

(Arranged by industries.) 

Agricultural implements 7 

Automobile equipment 9 

Canning 9 

Cotton 9 

Drugs ' 9 

Dry goods 30 

Fly paper 1° 

Food manufacturers and I' Istuffs 10 

Gas and gas engines 11 

Grocers i 11 

Hardware -, — 20 

Ice 25 

Iron and steel 26 

Lighting equipment 27 

Lumber 27 

Machinery 28 

Machine tools 28 

Mill supplies 29 

Oil, edible 20 

Overalls 29 

Paint and varnish 29 

Paper manufacturers 31 

Plumbing supplies *. 33 

Roofing 33 

Screens 33 

Shirts 33 

Shovels 34 

Silos 34 

Tents, awnings, etc 34 

Toilet articles 34 

Walnut growers 35 

Woolen textiles 35 

184160—20 1 (3) 



Miscellaneous : Page. 

Attorneys representing different industries 36 

Axes 3G 

A. B. Jones Co 3C 

Barn fixtures 36 

Engineering ____ 36 

Exporters and importers 35 

Fairbanks Co __ 36 

Wind engines and pumps 37 

REPLIES OPPOSING GUARANTEE AGAINST PRICE 
DECLINE. 

Alfalfa , 38 

Automobile, accessories and tractors 38 

Blacksmith supplies 38 

Box makers 39 

Brass and bronze ^ 39 

Cereals 39 

Chemicals _ 39 

Chocolate 39 

Cloth 49 

Coffee, extracts, and spices 40 

Cordage and rope 41 

Cotton goods, thread, etc • 41 

Dyestuffs 42 

Electrical supplies 42 

Piling equipment, metal 42 

Food manufacturers (animal, grain, etc.) 42 

glycerine refineries 43 

Grocers 43 

Hardware 43 

Honey 44 

Hosiery 44 

House furnishings 45 

Implements and carriages 46 

Iron and steel 45 

Jellies 46 

Knit goods 46 

Live stock 47 

Lumber 47 

Machinery 47 

Machine tools 4S 

Milling, grain, flour, corn 48 

Molasses 49 

Nuts, edible 49 

Oil and petroleum 49 

Overalls 59 

Paints and varnishes 50 

Paper and paper products 51 

Boxes and box boards 52 

Roofing : , 52 

Peanuts • 52 

Plumbers' supplies 52 



Page. 

Rope 41 

Salt 53 

Saws 53 

Shoes, rubber 53 

Soap 53 

Solder 54 

Tacks 54 

Tin plate 54 

Tires - 55 

Typewriter ribbons — - 55 

Miscellaneous: 

Construction indusi ries 56 

Lamp standardization 56 

Manufacturers' agents 55 

Manufacturers and exporters 56 

Merchandise, wholesale jobbers 56 

Novelties 56 

Sulphonapthol 56 

NONCOMMITTAL REPLIES. 

Containers 57 

Cotton mills 57 

Hardware ■ 57 

Hardwood 57 

Live stock 57 

Machinery 58 

Paper 57 

Stoves 58 

Textiles 58 

Vulcanized fiber products 58 

Wire rope . 50 

FAVORABLE REPLIES WITH RESERVATIONS. 

Agricultural implements 59 

Cranberries 59 

Hardware i 59 

Machine tools 60 

Paint 60 

Wind mills, gas engines, etc 60 



QUESTIONNAIRE. 



The following is copy of circular letter sent out by the Federal 
Trade Commission, on December 26, 1919, to those interested in the 
subject of guarantee against price, decline : 

Gentlemen : The question of guarantee against decline in price has been 
the subject of so many complaints before the Commission and opinion seems to 
be so diverse that the Commission has determined to go into the whole matter 
thoroughly. 

As a basis for the necessary expenditures attending upon such an inquiry, 
such formal complaints have been issued presenting various phases of the 
subject. To the end that every party at interest may be fully represented, 
the Commission is inviting, generally, producers, manufacturers, merchants 
(wholesale and retail), and consumers, to declare their interest so that the 
Commission may know what parties should be represented. 

The Commission is asking you therefore to communicate as speedily and 
as widely as possible with your membership advising them of the invitation 
and to notify the Commission of the nature of their interest in the subject, 
if any. 

As soon as this list of the parties at interest in the matter can be compiled, 
it is the purpose of the Commission to invite each or any of them to submit 
his observations in writing. This follows the custom of the Commission in 
numerous other similar cases. 

A reasonable time limit for the filing of written statements will be given, 
after which they will be assembled and as Ear as possible classified and each 
correspondent will be furnished with a copy of the whole document. 

As soon thereafter as is possible it is the purpose of the Commission to 
call a general hearing at Washington at which parties at interest may be 
present in person, by representative or by counsel; and an orderly method for 
hearing the matter will be laid out. 

As in everything where the public interest is involved, the utmost expedition 
consistent with care and full opportunity for the presentation of all sides 
is to be desired. 

Letters similiar to this are being sent to various associations and concerns, 
but the Commision feels that its present list by no means includes all those 
whose interests may be touched by a final determination of the question. 

May we ask you, therefore, to give the widest possible currency to this 
invitation? 

By direction of the Commission. 
Very truly yours, 

Victor Murdock, 

Chairman. 
(6) 



REPLIES FAVORING GUARANTEE AGAINST PRICE DECLINE. 



AGRICULTURAL IMPLEMENTS. 

American Seeding Machine Co., Springfield, Ohio. Manufacturers. 

We favor continuation of principle, conditions of guarantee to be 
such as to safeguard interests of buyer and seller. In most cases 
safeguards interests of buyer and encourages freer purchases. 
The Appleton Manufacturing Co., Batavia, III. Manufacturers. 

At present time feel quite, desirable. Encourages dealers to carry 
normal stock and enables shipments in advance of time needed. 
Saves delays in transit and allows manufacturer to ship goods early. 
D. F. Avery & Sons Co., Louisville, Ky. Manufacturers. 

Much in favor of this custom as believe principle, as applied to un- 
delivered portion of contracts, such as steel bars, steel plates, etc., has 
tendency to insure regular and continuous factory operation and 
pives manufacturer opportunity to buy on less fluctuating market. 
However, such guarantee should be permissive and not mandatory. 
A. D. Baker Co., Swanton, Ohio. Manufacturers. 

Favor continuance of this principle, but as applying only to un- 
delivered portion of contracts covering steel plates, bars, lumber, etc. 
Practice regarded as beneficial to business in general. 
Beeman Tractor Co., Minneapolis, Minn. Manufacturers. 

Favors continuance of guarantee and expresses belief that it is a 
much-needed safeguard in business, especially in times like this, and 
works no hardship at any stage of the business. 
Case Plow Works Co., Racine, Wis. Manufacturers. 

Tends to stabilize business and creates confidence. Jobbers able to 
anticipate needs in advance, giving manufacturer more accurate 
knowledge as to his own needs. Is accorded this privilege in its busi- 
ness and extends same to customers. 

Challoner Co., Oshkosh, Wis. Manufacturers. 

Manufactures horseshoes, chains for motor trucks, etc., and finds 
it necessary to give guarantee in order to encourage jobbers to order 
sufficiently in advance to permit of best factory operation and proper 
distribution of shipments. Does not believe business could be con- 
ducted on any other basis. 

(7) 



8 

Deere & Co., Moline, III. Manufacturers. 

Believes guarantee essential to conduct of agricultural imple- 
ment business. Manufacturer's storage facilities limited to two 
months' output and jobbers will not buy season's requirements in 
advance without guarantee. Present practice permits more even 
distribution of shipments, Guarantee should be limited to follow- 
ing conditions: To definite date, immediately preceding farmers' 
demand; only to declines in manufacturers' own price; and cover 
only goods on hand at specified date. Sole object of extending guar- 
antee should be to bring about better factory operations and more 
even spread of shipments. 

Dempster Mill Manufacturing Co., Beatrice, Nebr. Manufacturers. 

As applied to season's requirements for iron and steel, believes 
practice should be continued. Does not comment with reference to 
guarantee to jobber. 

R. Herschel Manufacturing Co., Peoria, 111. Manufacturers. 

As applied to unfilled part of contracts, believe' practice should be 
continued; that is extent to which this concern is the beneficiary 
of such custom. 

Moore Plow & Implement Co., Greenville, Mich. Manufacturers. 

Beyond expression that approval is given to practice does not make 
comment. 

Owensboro Wagon Co., Owensboro, Ky. Manufacturers. 

Following recent hostilities, to encourage placement of orders, 
manufacturers resorted to guarantee against decline and thereby 
greatly stabilized conditions. Do v.<>\ believe guarantee works harm 
to either buyer or seller. 
Southern Plow Co., Columbus, Ga. Manufacturers. 

As a general proposition, opposed to price guarantee, but believe 
that guarantee shftulcl be given as related to unshipped portion of 
contract. 
Swayne, Robinson & Co., Richmond, Ind. Manufacturers. 

Provides means by which manufacturer may operate plant more 
continuously and does not impose hardship on anyone. 
Towers & Sullivan Manufacturing Co., Rome, Ga. Manufacturers. 

Believe that guarantee as applied to raw materials would facilitate 
factory operation and provide adequate stocks to meet demand. 
Ought to lower unit cost. 
Winona Wagon Co., Winona, Minn. Manufacturers. 

Believe manufacturers should have benefit of price guarantee as 
applied to unfilled portion of contract and feels that no hardship 
is imposed on anyone. 



AUTOMOBILE EQUIPMENT. 

Bright & Co., Reading, Pa. Jobbers. 

Guarantee induces buyer to stock up for a long period, such stock- 
ing insuring adequate flow of goods through retailer. Helps manu- 
facturers to handle business. 

CANNING. 

Warrensburg Canning Co., Warrensburg, 111. Canners. 

Seldom practice custom. Some manufacturers extend guarantee 
and others, where crop has been large and cost to pack lower than 
estimated at time of taking order, rebate jobbers at end of season. 
Seems to be no ground for complaint from any one as to practice. 

COTTON. 

Lauderdale Cotton Mills, Meridian, Miss. Manufacturers. 

In our business we need the right to enter into contracts for 
annual supply of dyestuffs, with guarantee against decline as applied 
to undelivered portion of contract. This practice enables manu- 
facturers the better to gauge their sales. 

DRUGS. 

National Wholesale Druggists' Association, Trade Association. 

New York, N. Y. 

Opinion furnished by members of this trade expresses approval 
for following reasons: Encourages jobbers to carry adequate stocks, 
stabilizes relations between manufacturer and jobber and assures 
more continuous operation of factories, with resultant steady em- 
ployment of labor. Manufacturer in touch with primary markets 
and able to closely estimate future conditions. Jobbers' profit too 
small to permit assumption of possible loss. Approximately 70 
per cent of goods handled by wholesale druggists subject to price 
fixed by manufacturer. Practice is aid to manufacturer in provid- 
ing complete and quick distribution to consuming market. Do not 
believe guarantee results in higher prices. In cases of epidemic, if 
insufficient stocks in hands of jobbers, abnormal demand quickly 
drives up prices. 

Smith, Kline & French Co., Philadelphia, Pa. Wholesalers. 

To order discontinuance of practice would disarrange business 
and in some instances result in higher prices to consumers. Two cases 
in point as related to their business are here given: . 

Naphthalene, of which this company claims to be the largest 
distributor in the United States, is purchased by them from the 
maufacturer under such guarantee, with the same protection ex- 



10 

tended by them to the retail dealer. If manufacturer not able in 
advance to calculate annual volume of business, which can not be 
assured without price being fixed subject to guarantee, he will be 
obliged to curtail production, and the resulting shortage of this 
commodity will lead to a higher price, aside from the fact that a 
lai'ge part of the public demand will go unsatisfied. 

The second case cited is that of the commodity aspirin, of which 
commodity this company claims to be the second largest dealer in 
the United States. Contracts made by this company with retailers 
for their aspirin requirements contain a guarantee clause and this 
has residted in assuring adequacy of supply and fixed and favorable 
price to the consumer. 

DRY GOODS. 

Wm. R. Moore Dry Goods Co., Memphis, Tenn. Wholesalers. 

In instances where assumption of such responsibility was war- 
ranted have guaranteed prices against decline. Believe should be 
universally practiced, especially in seasonal lines. Custom makes 
for more even factory operation. Spinners have opportunity to 
"hedge" on purchases of raw materials and should pass such pro- 
tection along to dealers. 

Southern Wholesale Dry Goods Association, Trade Association. 

Richmond, Va. 

Consensus of opinion in jobbing trade supports practice of guar- 
antee. 

FLY PAPER. 

O. & W. Thum Co., Grand Rapids, Mich. Manufacturers. 

Provides adequate stock in hands of jobbers and has resulted in 
material increase in annual volume of business. Examination of 
our accounts from 1S98 to date shows that such expense has im- 
posed a burden of but one-fourth of a cent per case of 250 double 
sheets of our product. Have not found that jobbers are encouraged 
to speculate. Exj)ense incident to guarantee incurred during one 
year not added to cost of product succeeding year. 

FOOD MANUFACTURERS AND FOOD STUFFS. 

Baker Food Products Co., Chicago, 111. Manufacturers. 

Has always been their practice to guarantee prices only to date 
of shipment. No comment made. 

Oliver-Finne Co., Memphis, Tenn. Manufacturers and Jobbers. 

Enables jobber to safely contract for supply of staple goods to 
properly meet demand. When declines occur at primary markets, 



11 

consumer gets immediate benefit, but frequently in case of advance 
in price full amount of increase is not imposed upon consumer. 

GAS AND GAS ENGINES. 

Citizens Gas Co., Indianapolis, Ind. Gas Works. 

In contracts executed for purchases of coke gives guarantee. 
New-Way Motor Co., Lansing, Mich. Manufacturers. 

Practice fair to both seller and buyer and secures maximum results 
as to production and delivery. 

GROCERS. 

Anthony Wholesale Grocery Co., Anthony, Kans. Jobbers. 

Candid opinion that manufacturers' guarantee on staple items use- 
ful arrangement for benefit of all concerned. Experience in whole- 
sale grocery business that items carrying guarantee sold on narrower 
margin than otherwise. Under present conditions lack of guarantee 
causing wholesale, grocer to be overcautious. In the past, have car- 
ried reasonable amounts of merchandise and there lias been no 
speculation among wholesale grocers on guaranteed items. 
Atlanta Wholesale Grocers, Atlanta, Ga. Jobbers. 

To abandon policy would lessen car loj shipments, adding cost to 
consumer and would eliminate cooperative plan by which manu- 
facturer has free use jobber's floor space in exchange for guarantee, 
adding to manufacturer's cost, paid by consumer. Large dealers 
in season of plenty would stock on speculative basis, taking advan- 
tage of markets as they advance. Small dealers at a disadvantage 
with firms of large resources unless price guaranteed to all. Loss 
dealers sustain, without guarantee made up in some other way and 
consumer pays-. Present plan affords consumer supply at correct 
prices; also affords carriers even freight movement. To prohibit 
guarantee would congest stocks at manufacturing plants. 
Barnes Grocer Co., Poplar Bluff, Mo. Wholesalers. 

Guarantee has been advantageous to jobbers and retailers. Believes 
consuming public not adversely affected, as jobbers and retailers, in 
turn, sell at lower prices upon notification from factory. 
Bell-Wayland Co., Oklahoma City, Okla. Wholesalers 

Enables small jobbers to buy in large units and secure benefit oi 
lower price for goods and transportation. All price reductions im- 
mediately pass to consumer. 

John N. Bey & Co., Vincennes, Ind. Wholesalers. 

Insures large jobbing stocks and narrow margin jobbing profit. 
Believes fair to dealers and consumers, and regarded as satisfactory 
method. 



12 

Blaul's Sons Co., Burlington, Iowa. Wholesalers. 

While guarantee in canned milk extends over period of 12 months, 

actually operates only in spring months when fresh milk is scarce [?] 
and price of canned milk declines. If guarantee not given, too 
great caution would be exercised by jobbers and sufficient stock would 
not be available to adequately supply the trade. 
Bloomington Wholesale Grocery Co., Bloomington, Ind. Wholesalers. 

Favors guarantee against price decline to prevent manufacturers 
from selling direct at lower juices than jobbers able to quote. Need 
guarantee of some sort. 
Boniface, Weber & Allen, Muncie, Ind. Wholesalers. 

Withdrawal of guarantee would unsettle business, disturb estab- 
lished custom, anil create uncertainty. 
Buckley-Terry Co., Laurel, Miss. Wholesalers. 

To supply retail trade, wholesale dealers me obliged to carry full 
stocks. Generally aided by a guarantee against decline. Eetailers 
carry small stocks and look to jobbers for quick deliveries. Jobber 
ought to have guarantee for at least 30 to 60 days, which admits of 
no speculation. 
F. C. Bushnell Co., New Haven, Conn. Wholesalers. 

Does not believe practice a menace to trade. 
Calhoun Grocery Co., Anniston, Ala. Wholesalers. 

Believes sound business practice which permits jobbers to carry 
adequate stocks. 
The C. Callahan Co., La Fayette, Ind. Wholesalers. 

Through former guarantee on canned milk manufacturer able to 
induce wholesaler to carry adequate stock. Decline in price di- 
rectly affects farmers. Farmers are being encouraged to increase 
herds, which adds to milk supply and, by the rotation of crops, in- 
creases grain output. Induces jobbers to take surplus stocks held 
by manufacturers with knowledge that no loss will result through 
price decline. Margin of profit to jobbers not sufficient to justify 
large capital tied up unless subject to guarantee. 
William D. Cleveland & Sons, Houston, Tex. Wholesalers. 

At present time inadequate transportation facilities require job- 
bers to buy in large quantities and exact guarantee. If goods were 
in manufacturer's possession, loss would be absorbed by them and 
even though goods are shipped 1o jobber in advance of time needed, 
liability on account of decline should not be transferred. 
Columbus Grocery Co., Columbus, Ga. Wholesalers. 

Practice might encourage some jobbers to overbuy, but advantages 
to trade in general are so many that believe practice should be con- 
tinued. 



13 

Colvin, Atwell & Co., Pittsburgh, Pa. Wholesalers. 

Believes consumer beneficiary of guarantee, and not wholesale or 
retail dealer. This custom enables wholesaler to carry sufficient 
supply of canned milk, which he can purchase and store in the 
spring and summer months, at lowest prices. Guarantee insures 
minimum price and without such guarantee adequate stocks will not 
be carried. 

Cooper-Dickinson Grocery Co., Little Rock, Ark. Wholesalers. 

In support of view, recites recent decline in canned milk, when 
jobber promptly so it says, reduced price. Looking to packei for 
guarantee. 
J. W. Crook, Baltimore, Md. Wholesaler. 

Asserts that in recent canned milk decline consumer immediately 
benefited 2 cents per can and that guarantee was passed back to 
packer. 

Dabney Bros., Florence, Ala. Wholesalers. 

Beyond statement that guarantee should be given to jobbers, com- 
ment is not made. 
Faucette Co., Bristol, Tenn. Wholesalers. 

Guarantee does not deprive consumer of lower price when decline 
occurs in primary market. Guarantee encourages jobbers to buy 
in pooled car shipments, which provides quicker transportation. Do 
not believe jobbers would carry sufficient stock to meet demand un- 
less they enjoyed this privilege. 
Federated Merchants, Cleveland, Ohio. Wholesalers. 

ruder system of guarantee any reduction in primary market, is 
immediately passed to consumer. Believe would be unfair to inter- 
fere with practice where jobber is given 50 or 60 day guarantee sub- 
sequent to receipt of goods in his warehouse. Encourages jobbers 
tn carry adequate stock. 
Gilbert Grocery Co., Portsmouth, Ohio. Wholesalers. 

Think concession one entirely within jurisdiction of manufacturer 
to refuse or extend and does not believe operates to disadvantage of 
consumers. Practice assists manufacturers of new brands to get 
goods on market. 
Goddard Grocer Co., St. Louis, Mo. Wholesalers. 

Does not encourage jobber to overstock speculating on advance in 
price. Receives 50-day guarantee on all canned milk, and believes 
practice entirely proper. 

A. Grafe Co., Terre Haute, Ind. Wholesalers. 

Without guarantee would be obliged to increase margin of profit 

as offset to additional hazard assumed. Guarantee does not operate 



14 

to disadvantage of consumer, as all declines are immediately passed 
on to public. 

Griffin-Goodner Grocery Co., Tulsa, Okla. Wholesalers. 

Emphatically in favor of guarantee on floor stocks. Past observa- 
tion indicates that such guarantee results in lower average price to 
consumers. When price of staple food stuffs decline, retail trade 
immediately notified by jobbers salesmen who desire to make sales 
at lower prices. Do not believe that practice encourages speculation 
or overstocking. 

Heisig & Norvell, Beaumont, Tex. Wholesalers. 

Enables jobbers to conduct business freely and keep merchandise 
moving on the basis of the maximum of service at a minimum cost. 
When manufacturer gives notice of price decline jobber passes ben- 
efit to retailer. Practice does not work hardship on the manufac- 
turer as moving stock from his possession to jobber's relieves ware- 
house congestion and reduces insurance liabilities. 

James W. Houston Co., Pittsburgh. Pa. Wholesalers. 

Believes fair to jobber in that he does not possess knowledge of 
primary markets and costs of ingredients composing manufactured 
articles. Believes manufacturer should be so posted on cost of raw 
materials entering into his product as will enable him to safely ex- 
tend guarantee. So far as observation goes this practice chiefly 
relates to proprietary articles. Jobber's profit small and he would 
be unable to suffer price decline. Consumer benefits when price 
declines and manufacturer shoulders loss. 

Illinois Wholesale Grocers' Association, Trade Association. 

Peoria, 111. 

Interview had by G. A. Stephens, representative, Federal Trade 
Commission, with D. H. Bethard, president ; A. Tref zger, treasurer ; 
Ross P. Seaton, secretary; and A. S. Oakford, member of advisory 
committee, Illinois Wholesale Grocers' Association, elicited the fol- 
lowing opinion : Believe in limited guarantee which would work 
equitably for all parties concerned, such limited guarantee applying 
only to unsold parts of grocer's stocks and not to undelivered por- 
tions. Does not believe that it would encourage overbuying and 
speculative element would be eliminated. Manufacturers have more 
complete knowledge of market conditions and better able to assume 
liabilities. 

Indiana Wholesale Grocers' Association, Trade Association. 

Indianapolis, Ind. 

Association favors practice, but makes no further statement. 



15 

Iowa-Nebraska-Minnesota Wholesale Grocers' Associ- 
ation, Council Bluffs, Iowa. Trade Association. 

Extension of guarantee encourages dealers to carry sufficient stocks 
and withdrawal of same would likely drive jobbers to concentrate 
on fewer brands, thus narrowing the selection of the public. En- 
courages introduction of new articles on the market, which could 
not get foothold without such guarantee. Enables jobbers to buy 
in carload lots, thus lowering unit cost of commodities and permits 
them to operate on smaller margin of profit. 

Jett & Wood, Wichita, Kans. Wholesalers. 

To abolish practice would work serious injury to business. As 
offset to price guarantee, lower trade discount is given purchaser 
under such contract. Permits jobber to buy in carload lots and re- 
sultant decrease in unit cost is passed to consumers. Where jobber's 
capital is involved in large stocks, loss in interest would be borne 
by them, so price guarantee really offsets such charge upon the job- 
ber. Jobbing competition is keen and decline in primary market 
promptly accrues to consumer. Guarantee was recently withdrawn 
from sales of soap, but did not bring about a reduction in the price 
of that commodity. 

Kentucky Wholesale Co., Pikeville, Ky. Wholesalers. 

Beyond statement that policy is favored, no comment is made. 
Los Angeles Grocery Co., Los Angeles, Calif. Jobbers. 

Guarantee makes it possible for jobbers to carry sufficient stock to 
care for trade. Milk is frequently shipped great distances and is 
long time in transit, necessitating large stocks in hands of jobbers. 
Believe guarantee serves interests of all concerned if given for reason- 
able time, say 30 days. 

J. E. Lynd, Russell, Ky. Wholesaler. 

Does not believe has bad effect on either producers or consumers. 
Jobber can not be expected to carry stock in advance of sale at own 
liability against decline. 
Samuel Mahon Co., Ottumwa, Iowa. Wholesalers. 

Enables wholesale dealers to render efficient service. Inclination 
to get greatest turnover of capital, provides necessary incentive to 
keep goods moving, but without guarantee jobbers would hold stocks 
for higher prices. 
Malone & Hyde, Memphis, Tenn. Wholesalers. 

Permits jobber to operate on smaller margin and to that extent 
is benefit to consumer. 



16 

The C. M. Miller Co., Cornelia, Ga. Wholesalers. 

Beyond statement that guarantee should be given to jobbers, com- 
ment is not made. 
Moore-Shenkberg Grocery Co., Sioux City, Iowa. Wholesalers. 

Interview had by G. A. Stephens, representative. Federal Trade 
Commission, with Mr. O. J. Moore, president, Moore-Shenkberg 
Grocery Co., Sioux City, Iowa, elirited the following opinion : 
Even under unlimited guarantee does not believe manufacturer as- 
sumes unfair risk. As offset to service thus rendered to jobber, the 
jobber provides storage facilities for manufacturer's goods in ad- 
vance of demand. Believes that removal of guarantee would restrict 
volume of business. 
A. P. Moore's Sons (Inc.), Tyler, Tex. Wholesalers. 

Jobber operates on small margin of profit and ought not be ex- 
pected to assume liability against decline as applied to goods he 
is actually carrying for manufacturer. Manufacturers familiar 
with market conditions and ought to be able to make reasonably 
accurate cost. and price calculations. Practice does not result in 
higher prices. 
William D. Mullen Co., Wilmington, Del. Wholesalers. 

Scarcity of milk at certain seasons and uncertainty of delivery due 
to inadequate transportation facilities have compelled jobbers to 
order large stock in advance of need, but practice does not encourage 
them to carry excessive stocks. Believes that the existence of stocks 
larger than normal would tend to keep prices from fluctuating. 
Guarantee especially needed during these abnormal times. 

National Grocery Co., Seattle, Wash. Jobbers. 

Practice chiefly applies to proprietary or much advertised brands 
of foods, which assures adequate stock in hands of distributors, on 
which the distributor and the retailer make smallest profit, a profit 
established by the manufacturer or by keen competition. Eetailers 
usually operate with limited capital and the obligation is imposed 
upon jobber to keep sufficient stock for quick demand, entitling him 
to guarantee against decline in price. Distance of jobbing centers 
from manufacturing regions additional reason for distributors carry- 
ing heavy stocks. Guarantee prevents losses otherwise occurring in 
wholesale jobbers' trade. Does not believe practice operates to dis- 
advantage of small manufacturer. 

Oklahoma Wholesale Grocers' Association, 

Oklahoma City, Okla. Trade Association. 

Majority Oklahoma grocers favor guarantee, believe that it bene- 
fits consumers, enables jobbers to buy in larger quantities, thus secur- 
ing lower freight rate, and makes it possible for jobber to distribute 



17 

on smaller margin of profit. Practice chiefly followed by manufac- 
turers of proprietary articles, which permits manufacturer to oper- 
ate plant full time, for which assurance manufacturer willing to 
guarantee such protection to jobber. Guarantee is also' means by 
which new article may find a place in the market. 
L. Patterson Mercantile Co.. Mankato, Minn. Wholesalers. 

As affecting consumer believes guarantee more advantageous than 
disadvantageous. When jobber is guaranteed against decline there 
is no incentive to sell at higher prices. Besides, under keen competi- 
tive conditions, the refusal of one jobber to raise prices will deter 
others from doing so, and the same uniformity of action may be 
looked for if one jobber lowers prices. Enables jobber to carry suffi- 
cient stock, makes for better service to the public and, in our opin- 
ion, is objected to by manufacturers who desire loss to fall on job- 
ber, retailer, and consumer. 
A. H. Perfect & Co., Fort Wayne, Ind. Wholesalers. 

When taking jobbers' orders manufacturers calculate cost of raw 
material and ought to be in a position to safely estimate guarantee. 
If stock were retained in possession of manufacturer loss through 
decline in prices would have to be taken by him. Do not believe 
such practice encourages excessive buying with speculative intent. 
Expense of guarantee would not be more than shrinkage in value if 
stock were held by manufacturers. Enables jobbers, through large 
purchases, to lower unit cost of goods and transportation. 
Powell-Sanders Co., Spokane, Wash. Wholesalers. 

Stabilizes market by encouraging buying at times when demand 
is slow and makes available adequate stocks for consuming public. 
Gives manufacturer ready use of money and exempts him from 
payment of storage charges or expense. Transfer of goods from 
manufacturer to jobber in advance of season would not justify 
shifting liability for decline. 

J. M. Radford Grocery Co., Abilene, Tex. Jobbers. 

Enables small retailers to carry adequate stocks. When decline 
occurs in primary market, benefit passes to consumer, although 
sometimes on advancing markets full increase is not charged con- 
sumer. 

Rapides Grocery Co. (Inc.), Alexandria, La. Jobbers. 

Practice has long been in use in grocery trade and do not believe 
it wise to discontinue. 

M. E. Reeve, Peoria, 111. Wholesaler. 

Interview had by G. A. Stephens, representative, Federal Trade 

Commission, with Mr. M. E. Reeve, of Peoria, 111., elicited the fol- 



18 

lowing opinion: Believe in limited guarantee which would work 
equitably for all parties concerned, such limited guarantee applying 
only to unsold parts of grocer's stocks and not to undelivered por- 
tions. Does not believe that it would encourage overbuying and 
speculative element would be eliminated. Manufacturers have more 
complete knowledge of market conditions and better able to as- 
sume liabilities. 

Ridenour-Baker Grocery Co., Kansas City, Mo. Jobbers. 

A selling device of doubtful efficiency, but a matter for deter- 
mination by each individual seller. When price decline takes place 
in preliminary market, manufacturer notifies the jobber, who im- 
mediately makes reduction to retailer and latter gives benefit to 
consumer, which practice does not prevent the functioning of the 
law of supply and demand. At one time custom did result in over- 
buying, but caused no injury to public. 

J. H. Riggs, Peoria, 111. Wholesaler. 

Interview had by G. A. Stephens, representative Federal Trade 
Commission, with Mr. J. H. Riggs, of Peoria, 111., elicited the fol- 
lowing opinion: Believe in limited guarantee which would work 
equitably for all parties concerned, such limited guarantee applying 
only to unsold parts of grocer's stocks and not to undelivered por- 
tions. Does not believe that it would encourage overbuying and 
speculative element would be eliminated. .Manufacturers have more 
complete knowledge of market conditions and better able to assume 
liabilities. 

J. W. Rowe Co., Hampton, Va. Wholesalers. 

Declines in primary markets are passed on through various stages 
of trade to consumer. Do not believe practice hurtful to interests of 
public. 

Sales Extension Co., Indianapolis, Ind. Wholesalers. 

Practice not unfair. Aids small jobber, who otherwise would be 
unable to compete with the jobber of large capital. Retailer imme- 
diately gets benefit from decline. 

Saunders' Sons Co., Richmond, Va. Wholesalers. 

Guarantee against decline enables jobbers to buy in car lots at 
lower unit cost for goods and transportation and provides consumer 
with ready supply from which to draw. Packers' reductions are 
immediately made effective for benefit of retailer. 

Sentney Wholesale Grocery Co., Hutchinson, Kans. Jobbers. 

Margin of profit on list goods so small that jobber will not handle 
without guarantee. Where guarantee accorded, jobbers buy with the 



19 

object of securing best unit prices and carload freight rate, enabling 

them to handle with small profit. Since guarantee withdrawn from 
soap and lard small purchases are made, with resultant increase in 
unit cost. Besides dealers not being protected hold slocks for higher 
prices. 

Southern Georgia Grocery Co., Quitman, Ga. Jobbers. 

Unless guarantee given, wholesale grocers would be compelled to 
increase profit to offset additional hazard involved. 

Straud-Dockum Grocery Co., Corsicana, Tex. Wholesalers. 

Enables manufacturer to make better and more economic distribu- 
tion. 

E. S. Street & Co., Dublin, Ga. Wholesalers. 

All stages of business are benefited by this practice, which tends to 
reduce the cost of living and to stabilize prices. 

Tidewater Wholesale Grocers' Association, Norfolk.Va. Trade Association. 

With present small margin of profit jobber would be unable to 
carry adequate stock unless given guarantee. Guarantee encourages 
larger purchases which result in lower unit cost. Such practice does 
not tend to maintain prices. 

Tucker & Goodwin, Hartford, Conn. Wholesalers. 

Guarantee permits jobber to purchase larger stocks at lower unit 
cost and thereby take better care of the trade. Declines in primary 
markets are automatically and promptly passed to consumer. If 
guarantee withdrawn, jobbers obliged to increase margin of profit to 
offset additional hazard. 
Tyler Grocery Co., Birmingham, Ala. Jobbers. 

Practice might lead to overbuying if not checked by manufac- 
turer, who ought to know something of jobbers 1 needs. Guarantee 
enables jobber to operate on closer margin. 

Tyler & Simpson Co., Gainesville, Tex. Wholesalers. 

Does not encourage overstocking but does provide adequate stuck. 
obtained at lowest unit cost and transportation at lower cost than 
for smaller shipments. 

Ullmann, Stern & Krausse, San Antonio, Tex. Wholesalers. 

Guarantee against decline does not tend to maintenance of prices, 
as all declines in primary markets are promptly passed to consumer. 

Wash, Davie & Co., New Orleans, La. Wholesalers. 

Protests against discontinuance of custom. Contends that no 
jobber, through guarantee, is given unfair advantage over com- 
petitor, as competition regulates all differences in price. Believes 
184460— 20 2 



20 

that inadequate stocks will be carried by jobbers if privilege with- 
drawn. 

The Wiles Grocery Co., Zanesville, Ohio. Jobbers. 

Cites canned milk as illustrating benefit of guarantee. States 
that packers declines are immediately given to consumer through re- 
tailers. Guarantee enables jobbers to carry sufficient stock to meet 
demand. 

HARDWARE. 

Ainslie-Martin Co. (Inc.), Lynchburg, Va. Jobbers. 

If guarantee not accorded, unable to anticipate wants and order 
for future shipment. 
Albany Hardware & Iron Co., Albany, N. Y. Jobbers. 

Emphatically favor plan, especially in days of underproduction, 
when merchant is forced to order 6 to 12 months in advance, to 
preserve business, running risk of depreciation from big prices at 
time consignment is received. Few of us believe in overtaxing either 
our credit or warehouses, but are obliged to have goods if we are to 
hold trade; therefore, protection given by guarantee removes large 
element of risk. If manufacturers lower costs, prices fall and mer- 
chant gets guarantee for unshipped portion contract. Fear of de- 
cline deterred merchants from keeping stocks normal. As a con- 
sequence became stripped of goods and prices were bid up by con- 
sumers. 
Allen & Jemison Co., Tuscaloosa, Ala. Jobbers. 

Feel practice essentially necessary on seasonal goods bought long 
in advance of season. Would be very hazardous to purchase with- 
out guarantee. Do not believe jobbers would carry sufficient stock 
unless guaranteed against decline. 
Anniston Hardware Co., Anniston, Ala. Jobbers. 

As jobbers can not buy full requirements in some lines, believe 
business of country would be hindered if guarantee were withdrawn. 
Baker & MacDowell Hardware Co., Natchez, Miss. Jobbers. 

Practice has been of inestimable value to jobbers past two years. 
Do not consider that manufacturer who does not resort to practice 
is at disadvantage with manufacturer who extends privilege. 

A. Baldwin & Co., New Orleans, La. Jobbers. 

Believes practice concerns only manufacturer, and if he is willing 
to give guarantee, in order to move his product freely, feels he should 
be allowed to do so, as the custom stimulates business and removes 
fear. 



21 

Barker, Rose & Clinton Co., Elmira, N. Y. Jobbers. 

Does not believe any more unfair to guarantee prices to date of 
shipment than at date of order. 
The Bronson & Townsend Co., New Haven, Conn. Jobbers. 

Guarantee permits jobbers to operate with smaller margin of 
profit. 

Brown-Rogers Co., Winston-Salem, N. C. Jobbers. 

Practice stabilizes market and makes it possible for jobbers to buy 
goods sufficiently in advance of season to have supply ready when 
demand is made. 
Chapman & Bangs Co., Bridgeport, Conn. Jobbers. 

Articles such as tool steel sold by jobber on such narrow margin 
that slightest decline inflicts heavy loss. Does not believe that grant- 
ing of concession by one manufacturer operates to disadvantage of 
another manufacturer. Believes manufacturer should restrict obli- 
gation to specific proportion of orders placed, to obviate speculation 
on part of jobber. Expresses belief that such practice does not 
deter manufacturers from putting reductions in<<> effect. 
Charlotte Hardware Co., Charlotte, N. C. Jobbers. 

On specified amount of goods bought in advance of season abso- 
lutely essential for manufacturer to give guaranty. Otherwise can 
not buy for future delivery. Enables jobbers to assure prices to 
retailers. 

Corpus Christi Hardware Co., Corpus Christi, Tex. Jobbers. 

In order to calculate prices at which goods are to be sold jobbers 
must rely upon guarantee from manufacturers. 

Crancer Hardware Co., Leavenworth, Kans. Jobbers. 

Believes would be mistake to stop practice, as it serves to stabilize 
market. 

Crumley-Sharp Hardware Co., Atlanta, Ga. Jobbers. 

Under present conditions, do not see how business could be intel- 
ligently or safely conducted without guarantee. 

A. Deutz & Bro., Laredo, Tex. Jobbers. 

Believes practice to best interest of public, especially at this time, 
when materials are scarce and freight transportation congested. 

Dinkins-Davidson Hardware Co., Atlanta, Ga. Jobbers. 

Enables manufacturers to estimate needs, operate plant more 
evenly, and place in jobbers hands adequate stocks to take care of 
trade. Do not believe jobbers would be disposed to buy under other 
circumstances. 



22 

Doherty Hardware Co. (Ltd.), Baton Rouge, La. Jobbers. 

Practice makes it possible for factories to better plan their opera- 
tions, gives jobbers advance knowledge of prices, and enables re- 
tailer to place order with jobber and be assured of getting goods 
on time. 
Griffin-Cantrell Hardware Co., Rome, Ga. Jobbers. 

If guarantee extends, permits jobbers to go to retailers with 
sufficient advance knowledge of prices to fix profit and move intel- 
ligently. 

Griffin Manufacturing Co., Erie, Pa. Manufacturers. 

As manufacturer, does not particularly care for system, but sees 
no objection and does not believe that it operates to disadvantage 
of manufacturer or jobber. 

Harper & Mclntire Co., Ottumwa, Iowa. Jobbers. 

Practice began in hardware trade about two years ago. The fol- 
lowing illustration for need of such guaranty is cited : 

In January jobbers usually purchase gun shells from manufac- 
turers tor shipment about April 1, which are delivered by jobbers 
to retailers subsequent to July 1, subject to October 1 dating. If 
guarantee not given jobber could not purchase that far in advance 
and take chances on decline in price. Do not believe practice operates 
to disadvantage of anyone. It establishes confidence and enables 
jobbers to carry adequate stock. 

Huey & Philip Hardware Co., Dallas, Tex. Jobbers. 

Were it possible to receive goods one week or so after order had 
been placed necessity for guarantee would be eliminated, but under 
present conditions guaranty is necessary. 

Interstate Hardware & Supply Co., Bristol, Tenn. Jobbers. 

Believe manufacturer should give such guarantee to jobber and 
jobber extend privilege to retailer, permitting more intelligent pur- 
chasing. Absence of guarantee discourages dealers from making 
adequate purchases, and when decline occurs compels them to resist 
reduction. Actual practice demonstrates that reductions made by 
manufacturers are promptly passed to consumers. Eemoves uncer- 
tainty from business. 
Keith, Simmons & Co., Nashville, Tenn. Jobbers. 

(Guarantee provides more even factory operation and will not result 
in speculation to any great extent, but does insure adequate stocks in 
hands of jobbers. Insufficient stocks would operate against proper 
conduct of business. Manufacturers able to calculate expense of such 
concession and therefore not apt to suffer loss. 



23 

Knapp & Spencer, Sioux City, Iowa. Jobbers. 

Approves guarantee against decline to date of shipment. One- 
third to one-half of years business sold three to six months ahead of 
season and must assure retailers that price will stand, which unable 
to do unless jobbers accord guarantee by manufacturers. Does not 
believe practice gives one manufacturer advantage over another. 

Krakauer, Zork & Moye's Successors (Inc.), El Paso, Tex. Jobbers. 

Believes jobbers ought to be permitted to contract for adequate 
stock in advance of time needed with assurance of guarantee against 
decline ; otherwise would not be able to do so. 

The Lee Hardware Co. (Ltd.), Shreveport, La. Jobbers. 

Believe guarantee only method for stabilizing market and do not 
regard as an unfair practice. 

Lewis Mill Supply Co., Helena, Ark. Jobbers. 

Believe manufacturer should give jobbers 60 to 90 days' notice of 
decline in order to give the latter time to dispose of stock without 
loss. Such practice would not compel jobbers to buy meagerly. 
C. M. McClung Co., Knoxville, Tenn. Jobbers. 

Believe wholesale dealer entitled to this measure of protection 
against decline in view of heavy stocks carried. 
McLenden Hardware Co., Waco, Tex. Jobbers. 

Believe guarantee should be given on seasonal goods, especially in 
view of time taken to make deliveries after orders are entered. 

Monroe Hardware Co., Monroe, La. Jobbers. 

Jobbers usually a long distance from the manufacturers and are 
obliged to buy seasonal goods much in advance of selling season 
and ought to be accorded guarantee. Manufacturer should be able 
to grant such concessions in view of the fact that he knows his raw 
material and labor markets. 

J. W. Murchison & Co., Wilmington, N. C. Jobbers. 

Would not be willing to purchase some articles, in large quantities 
and in advance of season, unless accorded guaranty. 

Nixon Hardware Co., Rome, Ga. Jobbers. 

Jobbers unable to give price assurance to retailers unless accorded 
guarantee by manufacturers. 

Norton Hardware Co., Norton, Va. Jobbers. 

Many articles sold by hardware jobbers are, purchased and de- 
livered to them long in advance of their selling season and retailers 
will not place orders unless prices may be definitely given them. 



24 

Odell Hardware Co., Greensboro, N. C. Jobbers. 

Guarantee provides better factory operation and more even flow 
of goods to jobber. Manufacturer required to have jobbers' orders 
in hand 6 to 10 months in advance of retail demand and jobber will 
not assemble large stocks at his liability. Permits manufacturer to 
produce and ship in sufficient time, serves interest of jobber to have 
ready supply and makes for prompt delivery to retailer upon de- 
mand. Unless practice permitted, would demoralize trade as now 
conducted and be distinct advantage to mail-order houses. 

Penick-Hughes Co., Stamford, Tex. Jobbers. 

To assure jobbers adequate stocks necessary for them to make 
purchases months in advance of call upon them. Without guar- 
antee few jobbers could make proper provision for trade. The prac- 
tice stabilizes prices, enables manufacturers to ascertain the kinds 
and styles of goods desired and prevents profiteering. 
W. H. Richardson & Co., Austin, Tex. Jobbers. 

Would be suicidal for jobbers to attempt to carry adequate stocks 
without guarantee. This policy enables manufacturers to make 
even distribution of output in advance of time needed by consum- 
ing market. If manufacturers were obliged to concentrate ship- 
ments in short period of time freight congestion would result. 
Roanoke Hardware Co. (Inc.), Roanoke, Va. Jobbers. 

Regards as important that manufacturers in certain lines give 
guarantee to cover period required for jobbers to dispose of goods, 
otherwise declines would result in great loss to jobbers. 
Russell Hardware Co., McAlester, Okla. Jobbers. 

A question to be determined by seller. Jobbers will not buy 
seasonal goods in advance unless so protected. Permits manufac- 
turers to dispose of output by steady flow of jobbers. Manufacturers 
in closer touch with general trade conditions and able to more intel- 
ligently set future prices. 
Sterling Hardware Co., Bluefield, W. Va. Jobbers. 

Does not regard as unfair method of competition and practice not 
calculated to encourage overbuying. Jobber not financially able to 
assume liability of advance for goods purchased prior to need. 
W. M. Tatum Hardware Co., Corsicana, Tex. Jobbers. 

Without guarantee could not provide for future business, espe- 
cially as regards seasonal goods. 
Thompson-Miller Hardware Co., Charleston, S. C. Jobbers. 

Unless guarantee given would be difficult for jobbers to buy in 
adequate quantities and in advance of season's needs. Practice may 
encourage overbuying to some extent but not enough to offset advan- 
tages of system. 



25 

The Walter Tips Co., Austin, Tex. Jobbers. 

Jobbers are obliged to purchase goods, usually from long distances, 
much in advance of demand upon them and ought to be given guar- 
antee so they and retailers may be able to estimate prices for the 
following season. 
Townley Metal & Hardware Co., Kansas City, Mo. Jobbers. 

Regards as economical expedient looking to proper distribution of 
goods and absolutely necessary on seasonal goods, to encourage job- 
bers to buy and store in advance of demand. Makes for more even 
distribution of transportation burden. 
Tullis-Gamble Hardware Co., Montgomery, Ala. Jobbers. 

Unless guarantee given jobbers will be obliged to buy from month 
to month or would be forced to gamble on an uncertain market. 
Placing orders at prices ruling on dates of shipment puts jobbers 
at mercy of manufacturers. Jobbers' margin of profit very small on 
staple lines. 
The Wagner Hardware Co., Mansfield, Ohio. Jobbers. 

Of decided advantage to dealer and consumer to have prices guar- 
anteed. When we are apprehensive that market is tending upward 
urge retailer to buy on future dating at market price date of order. 
Declines in price are covered by telegraphic notice to salesmen and 
have reason to believe that other jobbers follow same practice. 
Watkins-Cottrell Co., Richmond, Va. Jobbers. 

Regard as entirely fair practice whereby manufacturer gives to 
jobber guarantee for certain period. 
J. D. Weed & Co., Savannah, Ga. . Jobbers. 

Essential that manufacturer guarantee certain commodities sold 
for future shipment. Otherwise jobbers unable to take care of trade. 
E. L. Wilson Hardware Co., Beaumont, Tex. Jobbers. 

Believes that certain staple lines and seasonal goods should be 
subject to guarantee. 
Wimberly & Thomas Hardware Co., Birmingham, Ala. Jobbers. 

Guarantee against price decline enables jobbers to buy seasonal 
needs in adequate quantities and in sufficient time to meet demand, 
which would not be done unless afforded protection. Nonseasonal 
goods purchased by us are bought subject to price at date of shipment 
and constitute about 90 per cent of our business. 

ICE. 

Mountain Grove Creamery, Ice & Manufacturing Co., Manufacturers. 

Mountain Grove, Mo. 

Expresses need for stabilization of some sort to protect future 
market and avoid losses. 



26 

IRON AND STEEL. 

Advance-Rumely Co., Chicago, 111. Manufacturers. 

Practice long tried successfully among manufacturers steel bars, 
plates, etc., and lias been beneficial to steel manufacturer and to pur- 
chasing manufacturer. It permits fabricator to plan beforehand 
without handicap of uncertainty as to price at time of delivery. Any 
different rule would, in time of serious price fluctuation, require fabri- 
cator to practice hand-to-mouth policy, thus hindering production. 
In recent years agricultural machinery companies adopted similar 
policy. Prices were high during and at close of the war and dealers 
hoped prices would decline. Manufacturer believed this was hazard 
he should assume and give the dealer guarantee applied to com- 
modities contracted for but not delivered, thereby enabling the manu- 
facturer to go ahead. Believes practice should be encouraged. 
Brown-Wales Co., Boston, Mass. Jobbers. 

Approves custom because encourages jobbers to carry normal stock 
and evenly distributes demand upon manufacturer. 
Columbia Tool Steel Co., Chicago Heights, 111. Manufacturers and Retailers. 

Has never accorded guarantee to great extent, but where long- 
time sales of definite quantities have been sold, has executed contracts 
with this provision. Believes that proposition is one sided, but recog- 
nizes virtue in aiding dealers to anticipate requirements and thus 
stabilize prices. Do not believe generally practiced in their trade. 
Illinois Wire & Manufacturing Co., Joliet, 111. Manufacturers. 

Believes matter not one of public interest, but solely concerns 
manufacturers and their customers. No further comment. 
French & Hecht, Springfield, Ohio. Manufacturers. 

Does not believe guarantee violates any sound business principle 
or works hardship against any one as applied to unshipped portion 
of contracts. Custom facilitates better factory operation. 
Goodell-Pratt Co., Greenfield, Mass. Tool Manufacturers. 

Grants guarantee only to date of shipment. For past three years 
obliged to sell at price prevailing at date of shipment. 

Havana Metal Wheel Co., Havana, 111. Manufacturers. 

Beceives and dispenses guarantee privilege. Guarantee given by it 
relates only to unshipped goods. Disapproves of guarantee on goods 
shipped unless shipped on consignment. Do not believe custom de- 
moralizes trade, but permits jobber to meet competition when price 
decline sets in. 

Martin Steel Products Co., Mansfield, Ohio. Manufacturers. 

Practice results in more even factory operation and provides for 
better distribution of output from manufacturer to jobber. 



27 

New England Chain Works, Boston, Mass. Manufacturers. 

Manufacturer gives guarantee to assure better plant operation and 
not injurious to public interests. Does not operate against small 
competitor or one who does not given guarantee, unnecessarily in- 
crease jobber's stocks, or encourage manufacturer to keep up prices. 

Niles & Scott Co., La Porte, Ind. Manufacturers. 

Executes contracts which give a guarantee against decline as ap- 
plied to undelivered portion of raw materials. Would be hardship to 
operate without such guarantee and are in favor of practice being 
continued. 

St. Louis Iron Store Co., St. Louis, Mo. Jobbers. 

Have operated under such guarantee from manufacturer, but new 
encouraged to overbuy. Prevents manufacturer from seeking to 
overload jobber. 

J. R. Stone Tool & Supply Co., Detroit, Mich. Jobbers. 

Does not regard as unfair or that it encourages overbuying. 
Western Steel & Iron Works, De Pere, Wis. Manufacturers. 

Expresses judgment that guarantee against price decline, under 
certain conditions, to date of shipment should be accorded, but does 
not indicate whether this should apply to its purchases or its sales. 

LIGHTING EQUIPMENT. 

Benjamin Electric Manufacturing Co., Chicago, 111. Manufacturers. 

Approves practice and expresses belief that any manufacturer 
with sufficient foresight to provide raw material and have labor 
situation in hand ought to be permitted to offer such guarantee on 
goods subject to future delivery, up to the date of delivery, but 
does not believe that such privilege should extend to include goods 
on shelves. Believes latter an abuse and should be regulated, as it 
imposes a hardship on weaker merchants and is to the advantage 
of financially stronger ones. 
Babcock, Hinds & Underwood (Inc.), Binghamton, N. Y. Jobbers. 

At present jobbers ought to have price guarantee on account slow 
deliveries and slow transportation. Retail dealers depend upon 
jobbers, requiring latter to carry larger stock than under other cir- 
cumstances. Under ordinary circumstances jobbers' stocks can be re- 
plenished in a few days. If guarantee not permitted, large capital 
will be required for jobbers' stocks and losses taken when market 
declines. 

LUMBER. 
Estes Lumber Co., Birmingham, Ala. Wholesalers. 

Guarantee would stabilize market and protect jobbers and con- 



28 

Gloster Lumber Co., Gloster, Miss. Manufacturers. 

Believe in times like present would stabilize market. 
The Allied Machinery Co. of America, New York, N. Y. Jobbing Exporters. 

Have never received payments of this character but believe firmly 
in practice as one calculated to promote export business by lessening 
risk exporter is obliged to assume. 

MACHINERY. 
Banks Supply Co., Huntington, W. Va. Jobbers. 

Stabilizes markets and encourages large buying, in addition to 
exciting confidence and enabling manufacturers to do business in 
larger units of sales. 
Harron, Rickard & McCone, San Francisco, Calif. Jobbers. 

During present high price period deflation in currency restricts 
volume of purchases, and if guarantee were not granted could not 
carry usual sized stock. Does not see any objection to such practice. 
A. M. Lockett & Co., New Orleans, La. Jobbers. 

Under guarantee jobbers do not speculate on price changes but are 
encouraged to carry adequate stocks. We protect retailers. Con- 
sumer is benefited by stabilization of market, being assured that no 
increase in price will occur after he has made a purchase. Do not 
believe manufacturers object to paying rebates, as refusal to do so 
would place them at disadvantage with competitors who, by reason 
of declining prices, would get the market. 
Queen City Supply Co., Cincinnati, Ohio. Jobbers. 

Regards as good business practice and does not tend to maintain 
high prices. 

Southern Supply & Machinery Dealers' Association, Trade Association. 

Richmond, Ya. 

Inquiry of members indicates that consensus of opinion supports 
the practice of granting guarantee to date of shipment, but not as 
applied to unsold goods. 

Swind Machinery Co., Philadelphia, Pa. Jobbers. 

Permits prompt service, enables jobber to anticipate needs and 
promotes better manufacturing schedule, the latter reducing the 
unit cost. In our line selling prices are fixed by the manufacturer 
and jobbers would be embarrassed without the guarantee. Know 
of no better stabilizer than this guarantee. 

MACHINE TOOLS. 
Purinton & Smith, Hartford, Conn. Jobbers. 

Manufacturer's commission to machine tool jobbers, which ranges 
from 10 per cent to 15 per cent affords such narrow margin of profit 



29 

that guarantee against price decline is necessary. For instance, a 
jobbing concern carrying $100,000 worth of machinery, if obliged to 
assume a 20 per cent reduction in price, would likely suffer loss of 
year's profits. Best plan would be to give jobber credit for all de- 
clines and charge against for all increases. 

Cole Manufacturing Co., Memphis, Tenn. Jobbers. 

Except in one or two instances has never received this privilege. 
However, is compelled to make large purchases to which are applied 
prevailing prices on date of shipment, with right to cancel if price 
not satisfactory. 

MILL SUPPLIES. 
Hardwicke-Etter Co., Sherman, Tex. Manufacturers. 

Supports approval of guarantee by following illustration: 
Ninety-five per cent of one article handled by this concern is sold in 
July and August, for which they are obliged to place order in early part 
of year. If dealers did not buy until just before goods are needed, 
manufacturers would have to bear loss resulting from price decline; 
consequently, the manufacturer feels nothing additional is lost by 
taking care of price decline after goods have passed out of his hands. 
Practice stabilizes market, but does not result in high prices. 

OIL— EDIBLE. 
E. T. Bedford, New York City, N. Y. Manufacturer. 

All reductions in price pass to consumer as soon as drop occurs in 
primary market. Docs not operate to disadvantage of middlemen in 
this line since they are largely engaged in putting up private brands, 
while we manufacture for the trade generally and, so far as possible, 
try to maintain a uniform average price. Encourages more liberal 
purchases and thus enables manufacturer to operate more con- 
tinuously and economically. 

OVERALLS. 
Crown Overall Manufacturing Co., Cincinnati, Ohio. Manufacturers. 

While practice is regarded as a necessary evil, would like to see 
custom eliminated. Chief object, inducement to merchants to place 
orders ahead. Prevents " bunching " of orders and keeps plant in 
operation the year around. Guarantee is only extended to date of 
shipment. While it is true that practice is chiefly for benefit of mer- 
chants, in no other way can they be encouraged to buy until goods 
actually needed. 

PAINT AND VARNISH. 
The Armstrong Paint & Varnish Works, Chicago, 111. Manufacturers. 

In our business appeals as splendid practice, and we do it regularly, 
particularly in winter. Do not believe well-run manufacturing es- 



30 

tablishmcnt can afford to operate part time full blast and balance 
half time. In many lines is positive benefit to purchaser and dealer. 
If can get dealer to take goods dull months, can run factory full time 
and sell closer. 

De Soto Paint Manufacturing Co., Memphis, Tenn. Manufacturers. 

Practice absolutely necessai'3' in paint business during certain 
period of the year. During first three months of year demand for 
paint at minimum, and in order to keep plant operating and stock 
moving toward jobbers, manufacturers obliged to date sales April 1, 
subject to guarantee. If jobbers not given assurance as to future 
prices, will not purchase until actually needed. As manufacturers 
in paint line contract for raw materials at set prices, no loss results. 

Louisville Paint, Oil & Varnish Club, Louisville, Ky. Trade Association. 

By resolution above-named club expressed itself as follows : 
" Use of paint confined to certain seasons, and unless guarantee 
permitted orders would be received within too short time to handle, 
compelling forced operation of factory at one period of the year, 
and result in partial idleness the balance. Believe ought to be re- 
garded as matter of policy to be determined by each concern. Such 
guarantees or contracts obviate misunderstandings." 

T. H. Nevin Co., Pittsburgh, Pa. Manufacturers. 

Dealers in seasonal commodities, which must be sold to jobbers 
long in advance of resale to retailer, require extension of this privi- 
lege. Makes for more even factory operation and better distribu- 
tion of shipments. 

Seidlitz Varnish Co., Kansas City, Mo. Manufacturers. 

Paint and varnish business of seasonal character. Raw materials, 
particularly those used in varnish, secured from foreign countries 
and the manufacturers are compelled to contract for their supplies 
six months to one year in advance of use, which to some extent sta- 
bilizes the raw market. Jobbers or agents will not take goods in 
advance of need unless protected by guarantee. Imposes no finan- 
cial hardship on manufacturer, especially since the advent of the 
trade acceptance in payment for goods delivered to jobbers. 

U. S. Gutta Percha Paint Co., Providence, R. I. Manufacturers. 

Formerly dispensed product through sales force, but in recent 
years has disposed of some through jobbers, on commission, guar- 
anteeing unsold portion of stock against price decline, in the belief 
thai such concession was a fair exchange for capital invested in our 
products by jobber. If prices advance, require jobbers to accept 
increased billing. Do not believe practice operates <f> disadvantage 
of consumer. 



31 

C. A. Woolsey Paint & Color Co., Jersey City, N. J. Manufacturers. 

To maintain reasonably continuous factory operation obliged to 
extend guarantee. If jobbers postponed purchases until just prior 
to seasonal demand, usual transportation facilities would not admit 
of proper deliveries. Elimination of guarantee would operate dis- 
advantageously to manufacturer. 

PAPER. 

The Hamersley Manufacturing Co., New York, N. Y. Manufacturers. 

Where manufacturer grants such concession he makes arrange- 
ment for his protection. Eliminates all disputes following sales. 

Schmidt & Ault Paper Co., York, Pa. Manufacturers. 

Guarantee insures manufacturer maximum production, lessens his 
need for warehouse facilities, and gives labor steady employment 
at uniform wages. Have not adopted such policy, but believe proper 
practice for those who desire to resort to it. Aids small manufac- 
turer with restricted warehouse space to operate plant efficiently. 

Writing Paper Manufacturers' Association, New York City. Manufacturers. 

Henry A. Wise, attorney for the Writing, Cover, Book, and Tissue 
Paper Manufacturers' Associations, submitted printed brief, dated 
March 15, 1920. His argument has been summarized as follows: 

Such practice does not prevent all purchasers from securing same 
privilege, and even though guarantee is extended by some manu- 
facturers and not by others, it would not result in monopoly. Any 
benefit accruing to party giving guarantee is the natural result of 
better business judgment. If seller willing to assume risk practice 
does not adversely affect the public; in fact, consumer gets goods 
at lower prices. So-called guarantee against price decline is really 
a guarantee that prices will not go up. The argument that guaran- 
tees establish more or less inflexible prices is not borne out by trend 
of prices in guaranteed commodities, which move upward and down- 
ward. The belief that such practice inures to the benefit of con- 
cerns with large capital ought not to be argument against the prac- 
tice, as the law does not contemplate the view that size, unless demon- 
strably monopolistic, is unlawful. Congress has never legislated 
against business establishments because of their size and resources; 
in fact, the Clayton Act provides, in part, that discriminations in 
prices between purchasers, based on difference in quantities sold, 
are lawful discriminations. Regards guarantee against price decline 
as similar to a conditional sale, which is lawful, and in support of 
that view quotes the following cases : 

See Wing v. Wadhams Oil & Grease Co., supra. 

In M. & E. Solomon Tobacco Co. v. Cohen (184 N. Y., 308), the 
facts were that a sale of bonded tobacco was made under contract 



32 

at a certain sum, including 70 cents per pound estimated duty, with 
an agreement that if the tobacco was appraised at less the duty 
should be allowed to the buyer. The buyer paid for the goods, in- 
cluding duty, and on a protest as to the rate of duty the protest 
was sustained and the duty was reduced to 35 cents. The court 
held that the buyer was entitled to a portion of the sum of duties 
returned. 

In Thomson v. McCaldin (8 N. Y. Supp. 71), the action was on 
a contract for the sale of lumber with a condition that the pur- 
chaser should have the benefit of any fall in the market price, and 
the court held that this was an enforcible contract under which the 
vendee was entitled to the benefit of the decline in the market price. 

In D. R. Vivion Mfg. Co. v. Robertson (75 S. W. 644; 176 Mo. 
219), the action was on a contract for the sale of manufactured ar- 
ticles. The language of the contract was "This price ($1.75) is to be 
increased or diminished in proportion to the rise or fall of price of 
materia] of which they are made, etc." The court found that the 
price had increased and permitted recovery upon the basis of the 
advanced juice. It says, among other things (75 S. W. at page 645) : 

When July 1st came and the bill was clue either party had a right to demand 
that the price, $1.75, should be scaled up or down according to the market at 
the several dates of deliveries. 

In many other cases the courts have been called upon to construe 
contracts attempting to provide for fluctuation in prices. 

In Bass v. Veltun (28 Minn. 512; 11 N. W. 65), and Parker v. 
Adams (47 Yt. 139), there were provisions for variation in price 
according to fluctuation of the market. 

In Champion Machine Co. v. Gorder (30 Neb. 89; 46 N. W. 253), 
there was a provision covering subsequent reduction in prices by the 
seller. Similarly 

Lutty v. Waterbury (140 111. 164; 30 N. E. 351), and 
Owen v. Mathews (19 N. Y. Supp. 813). 

See also Rutledge v. McAfee, supra. 

In none of these cases has any court intimated that there was any- 
thing unfair or illegal in such contracts, or that for any reason the 
courts should refuse to enforce the contract or refuse to permit a 

recovery which the facts disclosed might justify. 

******* 

In Spang v. Rainey (79 Fed. 250), the United States Circuit Court 
of Appeals for the Second Circuit had for consideration a contract 
pio\ iding for an increase in price when "there may be a general ad- 
vance in the market price." The Court affirmed a judgment permit - 
ting a recovery at a rate in excess of the contract price due to an 
increase in the market price, and there is no hint that such a contract 
is illegal. 



33 

PLUMBING SUPPLIES. 
Cyler & Mohler, Baltimore, Md. Manufacturers. 

Enables jobber to carry larger and more diversified stock, placing 
him in a position the better to serve his customers. Guaranteeing 
makes it possible for jobber to sell on closer margin. On market 
decline jobber immediately passes advantage to customers. Guaran- 
tee aids manufacturer in placing orders for his requirements and 
works for better and more, evenly distributed factory operations. 
Expresses view that guarantee is in the interest of manufacturer, 
jobber, and consumer. 
Pacific Pipe & Supply Co., Los Angeles, Calif. Jobbers. 

To meet market conditions jobbers obliged to carry large stocks, 
an investment that would not be justified unless manufacturer ac- 
corded guarantee against price decline. Immediately upon notifi- 
cation by manufacturer jobbers reduce prices of stock on hand for 
benefit of consumer. Without guarantee jobber would be inclined 
to hold up prices as long as possible. 

Samuel Sloane & Co., R6chester, N. Y. Jobbers. 

Manufacturers are familiar with primary market conditions and 
should intelligently estimate selling price. Practice permits maxi- 
mum and efficient factory operation. Transfer of goods in advance 
of season's call for benefit of manufacturer, and there is no reason 
why he should not be willing to accord protection to jobber for 
reasonable period, say 60 to 90 days. 

ROOFING. 
The Philip Carey Co., Cincinnati, Ohio. Manufacturers. 

Have extended guarantee against decline in its own price to date 
of shipment, but not thereafter. 

SCREENS. 
American Wire Fabrics Co., Chicago, 111. Manufacturers. 

Manufacture wire cloth for screen doors and windows, a season- 
able commodity, and is necessary to give dating at outset of season 
to gel distributors to take goods several months before needed. Sea- 
son ends latter part July. Many sections these goods are not needed 
again until following year. Have established rule of giving Feb- 
ruary first dating on goods shipped after September. Dealers would 
not take unless guaranteed. If practice not followed, we would 
have to build warehouses, as not able to ship in short time all goods 
required. Better to distribute shipments evenly over year. 

SHIRTS. 
Oppenheim, Oberndorf & Co., Baltimore, Md. Manufacturers. 

Guarantee not necessary except when prices at abnormal level. 
Assurance excites confidence in buyers, enables manufacturer to at- 



34 

tain maximum production without interruption, and produces sta- 
bilizing effect on market. Through greater production lower unit 
prices arc obtained by presence of greater volume of goods in mar- 
ket. With inflated market, do not believe jobbers overbuy. With- 
out guarantee during high-priced period jobbers will curtail orders, 
with resultant partial suspension of production activities. Do not 
believe practice operates to disadvantage of manufacturer unwill- 
ing or unable to extend priviege. Guarantee does not act as bar 
to price reduction, as nature of practice suggests otherwise. 

SHOVELS. 
The Conneaut Shovel Co., Conneaut, Ohio. Manufacturers. 

As a general practice do not accord guarantee but feel would stabil- 
ize market in this industry and would work to interest of public 
and manufacturer, in that it would provide normal stocks in hands 
of dealers and give them assurance that nothing would be lost by 
making purchases in advance of needs. 

SILOS. 
Lansing Silo Co., Lansing, Mich. Manufacturers. 

In sales of silos price is set when order is solicited, and guarantee 
against decline seems fair to first purchasers. 
McClure Co., Saginaw, Mich. Manufacturers. 

Guarantee facilitates buying during periods of doubt and does 
not impose hardship on anyone. When conditions warrant, be- 
lieve proper to extend protection for reasonable period on unde- 
livered portion of contract. 

TENTS, AWNINGS, ETC. 

Clifton Manufacturing Co., Waco, Tex. Manufacturers. 

Are forced to guarantee prices because products dealt in are of 
seasonable character, and merchants will not assume price obliga- 
tion on future shipments. This practice enables them to better 
gauge their own requirements. Express the view, however, (hat on 
nonseasonal goods likely practice could be eliminated. To illus- 
trate (their letter dated dan. G, 1920), orders booked during past 
60 days are for shipment up to September 1, carrying guarantee 
against decline. Practice of dating and guaranteeing necessary, as 
customers could not be supplied if they were obliged to wait until 
about 30 days before goods were needed. Does not guarantee against 
decline subsequent to date of shipment. 

TOILET ARTICLES. 
The Mennen Co., Newark, N. J. Manufacturers. 

Guarantee as applied to undelivered portion of orders contracted 
for in advance of season enables jobber to figure costs more accurately. 



35 

stabilizes his business, keeps him out of the market in periods of 
shortage, prevents destructive fluctuations, and distributes carrying 
charges equitably. Under above guarantee, seller will know his 
volume of output, be able to reduce cost of operation by more even 
distribution of output, make production more uniform and less ex- 
pensive, and reduce carrying charges and investment expense on 
account of storage facilities. Protects manufacturer against heavy 
orders when declines occur, with consequent shortages of materials. 
If guarantee goes to unconsumed material on former deliveries it 
invites a speculative element and brings higher costs, preventing 
natural reduction in prices. Under above practice, small operator 
does not operate at disadvantage with large operator, unless latter 
rebates for stock on hand. Wisdom of above contract was demon- 
strated to us during the war. Where we did not have such contract 
we were compelled to become speculators, not daring to wait or buy 
in normal quantities but entered the market during temporary breaks 
and bought large quantities, advancing the market for the next 
buyer. 

Guarantee upon single purchases or a series of single, unrelated 
purchases invites abnormal orders, creating a vicious circle of over- 
selling, shortage of production, and higher prices not based upon 
normal consumption but upon speculative demand. To illustrate : 
Where a manufacturer makes 10 per cent on an article, the unit cost 
of winch is $1, and subsequent costs permit him to sell a similar 
article for 90 cents, with the same percentage of profit, if he rebates 
10 cents on account of former articles sold, his profit is wiped out. 
Such guarantee tends to establish artificial prices and encourages 
the making of inordinate profits. 

WALNUT GROWERS. 

California Walnut Growers' Association, Trade Association. 

Los Angeles, Calif. 

Association believes such guarantee on certain products would re- 
sult in benefit to all parties from producer to consumer. 

WOOLEN TEXTILES. 

The Beckman Co., Cleveland, Ohio. Manufacturers. 

Guarantees customers against decline only in its own prices to date 
of shipment. 

MISCELLANEOUS. 

Douglas & Evans, New York, N. Y. Exporters and Importers. 

As applied to export business believes practice would be helpful. 
Would stimulate purchasing. Foreign buyers accustomed to this 
concession. 

184460—20 3 



36 

Fairbanks Co., New York, N. Y. Jobbers. 

For many years manufacturers have protected us with guarantee 
as related to stuck on hand at time of price decline. 

George E. Farrand, Attorney, Los Angeles, Calif. Attorney. 

On behalf of several business concerns in California favors con- 
tinuance of policy of guaranteeing against decline in price. 

A. B. Jones Co., .Tonesboro. Ark. Jobbers. 

Stabilizes prices. Declares that guarantee saves margin which job- 
ber would otherwise he obliged to add to selling cost. Makes lines 
not guaranteed less attractive. Without guarantee dealers will cancel 
orders and manufacturer or producer faces alternative id' bringing 
suit and losing customers' business, winch procedure would he more 
expensive than the granting of this concession. 

Kelley Axe Manufacturing Co., Charleston, W. Va. Axe Manufacturers. 

Manufacturers seasonal goods, which are sold the first three months 
of year, for delivery in fall and winter. Fearing decline in price 
between date of order and time of delivery jobbers will not place 
orders unless accorded guarantee. Under such eimcumstances with- 
out guarantee, manufacturers unable to plan for jobbers' needs suf- 
ficiently in advance to properly take care of the market. Guarantee 
provides for continuous factory operation and results in holding 
organization intact. Manufacturers do not particularly care for 
custom hut conditions in trade require adherence to same. Would 
he ruinous to business to uproot such old establish practice. 

Lakewood Engineering Co., Cleveland. Ohio. Manufacturers. 

Believe practice necessary in certain industries, particularly basic 
industries. Practice perhaps not necessary with trade-marked 
goods, except that seller of such articles ought to treat all customers 
alike and give rebate to purchaser who bought in advance of decline 
as offset to lower juice at which sold to those purchasing subsequent 
to decline. Guarantee necessary and fair in export trade with dis- 
tant countries, where wide Hint nations may take place between date 
of sale and receipt id' goods in consignees" countries. Would stabilize 
production and make for more effective relations between buyer 
and seller. 

C. A. Libbey, Oshkosh, Wis. Barn Fixtures Manufacturers. 

Guarantee against decline has made unnecessary a second trip of 
our salesmen to solicit business, as dealers bought season's require- 
ments in one order, thus sa\ ing expense of such trips. 
Kerr & McCord, Seattle, Wash. Attorneys. 

Attorneys for Federal Milk Co., Seattle. Wash. Newly estab- 
lished businesses need guarantee as lever to enter market. Permits 



37 

shipping greater number solid carloads, thereby reducing unit cost 
of transportation. Jobbers able to dispose of well-known brands of 
milk more quickly than brands less known; consequently, manufac- 
turers of latter required to give longer guarantee against decline. 
If not able to place large stocks, subject to guarantee, in hands of 
jobbers, alternatives are more expensive less than carload shipments 
or the maintenance of storage facilities in jobbing centers at expense 
of producers. Refusal to permit guarantee would operate to ad- 
vantage of large manufacturers. 

Scovel Iron Stove Co., San Francisco, Calif. Jobbers. 

Believe practice does not constitute unfair competition, and 
wherever manufacturer's capital enables him to offer customers such 
inducement and protection, feel he should not be prevented from ex- 
tending privilege. Excites buyers' confidence, but not to degree that 
they will buy beyond normal requirements. As the law of supply 
and demand usually sets price levels, manufacturers would not be 
able to postpone passing price decline benefit to trade, especially as 
such action might result in lessened sales and the imposition of 
greater loss than would be represented by the allowance paid under 
guarantee. 
United States Wind Engine & Pump Co., Batavia, 111. Jobbers. 

Guarantee greatly assists in selling goods, especially on high 
market, and exercises a stabilizing influence. Purchasing in large 
quantities from distant manufacturers lowers unit cost as compared 
with smaller purchases from local sources. 



REPLIES OPPOSING GUARANTEE AGAINST PRICE DECLINE. 



ALFALFA. 



Haywood Alfalfa Warehouse Co., Kansas City, Mo. 

Millers desire to enter strong protest against practice, expressing 
the opinion that it is an evil custom and ought to be stopped by legis- 
lation. 

AUTOMOBILE ACCESSORIES. 

Eclipse Manufacturing Co., Indianapolis, Ind. Manufacturers. 

Handle trade-marked articles, which is sold on percentage profit 
basis. Selling price moves in sympathy with cost of production. If 
jobber is given guarantee, manufacturer should also be protected. 

Hudson Motor Specialties Co., Philadelphia, Pa. Manufacturers. 

Eeally a form of rebating and results in unfair competition. 
Manufacturer not so protected and must pocket loss if decline oc- 
curs. Practice might lead manufacturer to overstock dealers and 
thereby eliminate competitors. 

AUTOMOBILE TRACTORS. 

Fageol Motors Co., Oakland, Calif. Manufacturers. 

Does not give guarantee — has done so once or twice when obliged, 
but will not continue practice. Not sound business. 

BLACKSMITH'S SUPPLIES. 

Champion Tool Co., Meadvil'e, Pa. Manufacturers. 

Believes unfair practice. Is hardship on manufacturers with 
small capital. Gives jobbers unfair advantage, and encourages them 
to take too great risk in placing orders. Creates speculative buying. 
Also makes for disadvantage as between large and small jobbers, 
former being able to secure such concessions which are denied latter. 
Guarantee tends to maintain artificial level of prices — certainly 
does not provide incentive for manufacturers to reduce prices, as 
would take place were they free to do so. When decline takes place in 

(38) 



39 

primary markets, this practice delays passing of decline on to con- 
sumer. 

BOX MAKERS. 

Mid- West Box Co, Chicago, 111. Manufacturers. 

Practice unfair in that any resultant loss is absorbed by one party 
to the contract. 

Stockton Box Co., Stockton, Calif. Manufacturers. 

Does not guarantee, and is opposed to practice, refusing to grant 
this concession to anybody. 

BRASS AND BRONZE PRODUCTS. 

Kingwell Bros., San Francisco, Calif. Manufacturers. 

Do not believe in practice. 

CEREALS. 
Atlas Cereal Co., Kansas City, Mo. Manufacturers. 

In rolled-oats business there are a few large operators and a few 
small operators — entire business possibly in hands of 10 corpora- 
tions. Our experience indicates guarantee is injurious to small 
operators and a vicious practice. Believe jobber should buy in ade- 
quate quantities to meet requirements and that speculative element 
should be removed. Are opposed to guaranteeing prices beyond 
date of sale and delivery. 

CHEMICALS. 
Butterworth-Judson Corporation, New York, N. Y. Manufacturers. 

Competition has sometimes forced them to extend guarantee, but 
decidedly opposed to such custom. 
H. K. Mulford & Co., Philadelphia, Pa. Manufacturers. 

Guarantee against price decline unfair method of competition, 
resulting in abuses. 

CHOCOLATE. 
Riesener Chocolate Co., San Francisco, Cal. Manufacturers. 

Makes no guarantee on either contract or open orders. Believes 
practice unfair to manufacturer as he purchases raw materials in open 
market and has no way of preventing loss through price decline. 
Price guarantee will, of course, induce jobbers to stock ahead and 
unless adequate stocks are carried by jobbers in this line will re- 
quire establishment of manufacturers' warehouses in jobbing centers, 
which they regard as uneconomical. Practice would also work hard- 
ship against small manufacturer, who is not able to support stocks 
in hands of jobbers through price guarantee. Believes price should 
be set at time of sale and no readjustment made. 



40 

CLOTH. 

New Jersey Cloth Co., Trenton, N. J. Manufacturers. 

Opposes guarantee and believes commission should form ally dis- 
approve. In normal times have afforded protection to customers 
through means of cancellation under certain conditions. 

Western Shade Cloth Co., Chicago, 111. Manufacturers. 

Guarantee imposes hardship upon the seller and encourages jobbers 
to purchase speculatively. A one-sided agreement. Practice naturally 
restrains competition for only manufacturers of large capital can 
afford to take such chances on future prices. 

COFFEE. 

American Coffee Co., New Orleans, La. Jobbers. 

Actual experience many years guaranteeing against our own ad- 
vance or against decline (GO to 1)0 days) to cover period date of sale 
to date of shipment, have observed great abuse and sustained sub- 
stantial losses. To cite specific case: April and May, 1919, when 
coffees were undergoing substantial advances, had 60 and 90-day 
contracts outstanding and sustained in June, 1919, operations net 
deficit of $7,988. During July and August, 1919, market declined 
rapidly. Submit that this policy one of the most abominable and 
expensive customs in merchandising. July 5, 1919, withdrew 60 and 
'.XI day and substituted 30-day guarantee. One customer offered 
contract for 1920 requirements at fixed price. We declined their busi- 
ness on such basis. Practice lead- to overstocking on roasted coffee. 

MacGowan Coffee Co. (Inc.), Jackson, Miss. Wholesale. 

Custom wrong in principle, tending to encourage speculation and 
leading to overstocking in perishable products. In perishable goods 
actually constitutes certain proportion of wastage, which loss must 
be calculated in fixing profits. Practice acts as bar to coffee roasters 
reducing prices. 
Maury-Co"e Co., Memphis, Tenn. Manufacturers. 

Against better judgment have been obliged to guarantee price to 
date of shipment, which necessitates calculating wider margin of 
profit than figured on straight sales. Unbusinesslike, encourages 
speculation, and leads to overbuying. Also gives unfair advantage 
to those extending privilege as against those who do not follow 
practice. 

Olson Coffee Co., Omaha, Nebr. Roasters. 

Guarantee encourages retailer and wholesaler to carry unneces- 
sarily large stocks ami practice ought to be discontinued. To illus- 
trate: On last rise in coffee market retailers inflated purchases 8 or 



41 

10 times, withdrawing large quantity of coffee from manufacturers' 
market, causing manufacturers to replenish stocks, artificially stimu- 
lating market and forcing increase in prices. 

CORDAGE AND ROPE. 
Columbian Rope Co., Auburn, N. Y. Manufacturers. 

Believes provision unfair and unjust to manufacturer. Expresses 
opinion that so-called contracts are merely options to jobbers and 
carry no advantage to manufacturer. Manufacturer does execute 
and live up to real contracts for raw materials. 

Plymouth Cordage Co., North Plymouth, Mass. Manufacturers. 

Raw materials, much of which are shipped long distances in ad- 
vance of use. not bought subject to such guarantee and do not be- 
lieve fair to impose obligation oh manufacturer. 

E. T. Rugg & Co., Newark, Ohio. Manufacturers. 

Market conditions would be better if practice were discontinued. 
Tubbs Cordage Co., San Francisco, Calif. Manufacturers. 

Manufacturers do not yet guarantee on raw materials and if 
obliged to extend guarantee to jobbers would mean introduction of 
another element of risk in business. Price guarantee operates to 
advantage of large dealers. Small dealers not able to buy large 
quantities and therefore less sought by manufacturers who extend 
guarantee. Discontinuance of practice ought to benefit business. 
Whitlock Cordage Co., New York City. Manufacturers. 

Although manufacturers in our industry have extended guarantee 
generally to date of shipment but sometime:; beyond, do not be- 
lieve practice rests upon good business principle. Custom has be- 
come so ramified that i( is difficult for a manufacturer to refuse 
such courtesy. We are obliged to purchase raw materials in open 
market, subject to any future change in price. 
COTTON. 

Cotton Thread Manufacturers' Exchange, Trade Association. 

New York City, N. Y. 

While practice is not followed in this industry, members of the 
Exchange voted to put organization on record as adverse to practice. 
Eagle & Phenix Mills, Columbus, Ga. Manufacturers. 

Believe guarantee unsound and unreasonable. Besides, it is a one- 
sided contract. We buy raw materials in market subject to fluctua- 
tion and see no reason for granting our customers such favors. 
J. Milton Hagy Waste Works, Philadelphia, Pa. Manufacturers. 

Guarantee against price decline worthless to manufacturer — a one- 
sided proposition. Considered sharp practice resorted to by sellers, 
overanxious to make sales. 



42 

Albert D. Smith & Co., New York. Manufacturers and Distributors. 

As manufacturers and commission merchants desire to enter pro- 
test against practice of selling with guarantee. 

DYESTUFF. 

Atlantic Dyestuff Co., Boston, Mass. Manufacturers. 

We discourage practice, but in some cases have been obliged to 
protect our customers against our own reduction. Have tried to 
keep contracts free of such objectionable terms. 

ELECTRICAL SUPPLIES. 

Johnson Electric Supply Co., Cincinnati, Ohio. Jobbers. 

Practice encourages jobbers to carry too much stock and has 
tendency to keep up prices. 

METAL FILING EQUIPMENT. 

Baker-Vawter Co., Benton Harbor, Mich. Manufacturers. 

Does not give guarantee, but believes practice is not good for 
business. 

FOOD. 

Aspegren & Co., New York City. Manufacturers. 

Practice fundamentally unsound. Would inject speculative fea- 
ture. Contracts for raw materials not subject to protection against 
decline. If we guarantee prices, we assume risk and find ourselves 
" playing the market," with attendant evils. Have found, even at 
higher price, jobbers give business to those who guarantee prices. 
Under guarantee system jobber assumes no risk; encourages him to 
contract for more than legitimate needs in anticipation of speculative 
profit. Over-buying puts greater quantity products than necessary 
in trade channels. Guaranteeing prices means expense to manu- 
facturer, same as other costs of selling, and consumer pays it. When 
prices raw materials decline manufacturers reluctant to reduce prices 
because of contracts at higher prices. 

Atlanta Refining & Manufacturing Co., Atlanta, Ga. Manufacturers. 

Are much opposed to policy of selling lard substitute against de- 
cline. Have been forced by larger interests to sell on this basis pas< 
five years. 

Memphis Milling Co., Memphis, Tenn. Manufacturers. 

Do not sell with guarantee, as not believed legitimate way to con- 
duct business. Has tendency to maintain artificial price level. Ani- 
mal foodstuffs, with little food value, subject to guarantee, would 
place at disadvantage superior goods without guarantee. 



43 

Purity Oats Co., Keokuk, Iowa. Manufacturers. 

Regards as a vicious practice and fundamentally unsound, work- 
ing hardship upon manufacturer and bringing no relief to con- 
sumer. Experience leads to belief that consumer will not get bene- 
fit unless jobber is driven by keen competition to reduce price. En- 
courages speculation and over anticipation of needs. 
Southern Corn Mills (Inc.), Memphis, Tenn. Manufacturers. 

In order to meet competition, obliged at times to give such protec- 
tion but do not approve practice. Do not regard as legitimate con- 
duct of business, as it tends to force up prices and sometimes gives 
a market to inferior brands of feeds with guarantee as against su- 
perior brands that do not carry guarantee. 

GLYCERIN. 

Black, Varian & Simon, New York, N. Y. Attorneys for Refiners. 

Trade custom in the glycerin industry has given approval to this 
guarantee, but it is believed that it jeopardizes the existence of the 
small producer and, in the long run, is unfair to the. consumer. If 
one refiner does not meet conditions offered by another, the only 
alternative left is closing down his plant. The practice leads to 
speculation and unstabilization. Observation shows that practice 
leads to control of this industry by a few large concerns, and if per- 
mitted to grow, will suppress competition. Prevents refiner from 
offering lower price than specified in outstanding contracts. 

GROCERS. 

Coleman-Clark Grocery Co., Paducah, Ky. Wholesalers. 

Regards as detrimental to business and has tendency to inflate 
prices. 

C. W. Cooper Co., Thomasville, Ga. Wholesalers. 

Practice should be abolished so as to remove temptation to specu- 
late in food commodities. Guarantee acts as incentive for salesmen 
to oversell customers. 

HARDWARE. 

Henkle & Joyce Hardware Co., Lincoln, Nehr. Jobbers. 

A discriminatory practice and ought to be forbidden by law; pre- 
vents genuine competition. While we have never refused to accord 
such privilege, still do not believe a proper way to distribute mer- 
chandise. 
Lorick & Lowrance, Columbia, S. C. Jobbers. 

Regards as unfair practice which encourages jobber to carry larger 
stock than he would risk if obliged to go into the open market. If 



44 

privilege is ever withdrawn it will lie at a time when jobber is 

heavily stocked and will cause him great loss. 

Mitche'l-Powers Hardware Co., Bristol, Tenn. Jobbers. 

Hope for lower prices but do not believe will come as Long as 
manufacturers arc permitted under price guarantee to load up job- 
bers, a practice which results in elimination of competition. 
Nelson Hardware Co., Roanoke, Va. Jobbers. 

Believe that custom, if practiced universally, would tend to innate 
prices and restrain manufacturers from making reductions while 
guarantees were out. However, recognizes that under existing cir- 
cumstances it is necessary for manufacturer to guarantee prices in 
order to market goods for entire season. 
Summers Hardware Co., Johnson City, Tenn. Wholesalers. 

Practice has tendency to continue higher prices longer than where 
guarantee not accorded. It is true, however, that in sonic- lines 
jobbers can not be induced to liuv without the guarantee. 
The A. I. Root Co., Medina, Ohio. Manufacturers. 

Believe practice should he discontinued, in that entire burden is 
placed upon manufacturer. Of course, practice enables jobbers to 
carry large stock's. 

HONEY. 

Rosenberg Bros. & Co., San Francisco, Calif. Manufacturers. 

Regards as device resorted to by manufacturers to stimulate Duy- 
ing, which practice results in overstocking and economic loss. If 
manufacturer intends to fulfill obligation, he is obliged to • protect 
himself by increasing his margin of profit, 

HOSIERY. 

Berkshire Knitting Mills, Reading, Pa. Manufacturers. 

Guarantee is unbusinesslike and unsound, and there is no need for 
such practice. Responsible manufacturers are obliged to obtain 
their materials without guarantee, and payment of jobbers' losses 
would react unfairly upon manufacturers. 

Richmond Hosiery Mills, Rossville, Ga. Manufacturers. 

Unequivocally opposed to practice, which places unfair burden 
upon manufacturer instead of distributing the loss through the 
Various stages of trade. 
Union Manufacturing Co., Union Point, Ga. Manufacturers. 

Unless abnormal profits are made under guarantee, such practice 
will lead to bankruptcy. 



45 

HOUSE FURNISHINGS. 

Otis Hidden Co., Louisville, Ky. Jobbers. 

Where such protection is afforded, profit must be set at figure to 
offset the hazardous undertaking and tend to keep up [trices. To lie 
fair, jobbers who receive guarantee should guarantee retailers, lml 
such guarantee might wipe out jobbers' profits. Would operate to 
unfair advantage of wide-awake retailer and favor less progressive 
merchant, the latter receiving guarantee on large unsold stock which 
would not have moved due to lark of enterprise. 

IRON AND STEEL. 
T. R. Almond Manufacturing Co., Ashburnham, Mass. Tool Manufacturers. 

Practice of guaranteeing against decline should be discontinued. 
Bolt, Nut & Rivet Institute, Pittsburgh, Pa. Trade Association. 

Expresses belief that such guarantee is practically option given 
buyer to accept or reject goods, depending upon prices at date of 
delivery as against prices at date of sale. Encourages speculative 
buying and inflates orders, creating artificial prices. Guarantee 
beyond date of shipment is vicious, as rebate in most cases is really 
additional profit. Such form of guarantee does not prevail in bolt, 
nut, and rivet industry. Guarantee effective until date of shipment 
is practiced in this industry and is not regarded as being so per- 
nicious, although it does introduce a speculative element in business. 
The Institute would welcome the abolition of this practice. They 
do not beljeve reform can be brought about within the trade. 

Detroit Range Boiler & Steel Barrel Co., Detroit, Mich. Manufacturers. 

An evil practice. Gives large manufacturers unfair advantage 
over small manufacturers, creates fictitious demand, and leads to 
speculation. 
Dikeman Manufacturing Co., Norwa'k, Conn. Tool Manufacturers. 

Dealers should so estimate requirements as to make this practice 
unnecessary. Guarantee could only be given by manufaetureres of 
large resources. 
Drill & Reamer Society, New York City. Trade Association. 

Society by resolution is on record as disapproving guarantee. 

Ohio Falls Iron Co., New Albany, Ind. Manufacturers. 

Guarantee operates to disadvantage of small concerns in steel in- 
dustry. Large steel manufactures own ore deposits, hut small manu- 
facturers obliged to buy in open market, with purchase made subject 
to fluctuating price. 
Peden Iron & Steel Co., Houston, Tex. Jobbers. 

Jobbers do not rebate manufacturers where prices advance and 
larger profits are taken, and believe that guarantee against price de- 



46 

cline is a question for determination by the manufacturer, without 

any demand being exerted upon him by the jobber. 

D. M. Sechler Implement & Carriage Co., Moline, 111. Manufacturers. 

Argument that price guarantee stimulates business is not convinc- 
ing. Believe better to rely upon moderate volume of trade, with the 
guarantee that price bargained for will be paid. 
H. D. Taylor Co., Buffalo, N. Y. Jobbers. 

Prefers to buy in open market on most favorable terms and take 
chances on future market conditions. Do not believe manufacturers 
who practice custom secure unfair advantage as liability so assumed 
must be taken into their unit price. Do not believe public hurt should 
jobbers make excessive purchases. 
Trimont Manufacturing Co., Roxbury, Mass. Tool Manufacturers. 

Unfair to guarantor, sometimes requiring absorption of consider- 
able loss. Regards as unethical. While manufacturer secures ad- 
vantage through advance acceptance of stock by jobbers, still do not 
believe that the former should guarantee against decline unless per- 
mitted to increase prices when market advances. 

JELLIES. 
Phez Co., Salem, Oreg. Manufacturers. 

Makes emphatic protest against such guarantee and believes prac- 
tice should be stopped. The following illustration of the operation 
of guarantee to grower by canner is cited: Take an average supply 
of 1,000 tons of strawberries in one district, two-thirds of which can- 
ning establishments have agreed to take at specified price. Each 
concern feels it should obtain part of the remaining available supply 
not contracted for, and bidding for such supply commences, with 
result that the price is driven up ('> or T cents, which automatically 
raises the price of supply previously contracted for, because growers 
are given benefit of market advances. Above custom will result, this 
year, in L5-ounce jars of jam being sold f. o. b. factory $4.50 to $5 
per dozen, instead of $?> to $:'.. r >0 per dozen, as last year. This situa- 
tion could be remedied by making straight price for two-thirds of 
available tonnage, and should competition for the remaining one- 
third force up prices the resultant increase, averaged for the whole 
supply, would not be too great a burden upon the consumer. Guar- 
antee against decline operates to keep up prices, from which we are 
now suffering. 

KNIT GOODS. 
Knit Goods Manufacturers of America, Utica, N. Y. Trade Association. 

Gives large concerns unfair advantage, encourages gambling as to 
prices and results in jobbers overbuying. Raw materials entering 



47 

into manufacture of underwear not guaranteed; labor can not be 
relied upon to produce uniform output nor, unless wage scale in 
effect is covered by agreement as to time, will cost of labor be known. 
Expense of guarantee is added by manufacturer to cost of goods and 
passed to consumer. Declines in manufacturers' market are not 
immediately felt by consumers, but simply mean loss to manufac- 
turer, gain to jobber and retailer, and no compensation to consumer. 
Unfair to manufacturers who do not give and to dealers who do not 
receive such protection. Works hardship on small manufacturers 
and small dealers. Underwear manufacturers must contract six 
months to one year in advance for raw material, without guarantee, 
in order to insure continuous supply of raw material to keep labor 
regularly employed. 

LIVE STOCK. 

Market Committee of American National Live Stock Trade Association, 

Association, Denver, Colo. 

Expressing whal is believed to be opinion of stockmen, feel that 
majority favor open market without artificial restrictions. 

LUMBER. 

Deal Saw Mills Co., Tuscaloosa, Ala. Manufacturers. 

Oppose any policy of fixing prices. 

Paterson & Edey Lumber Co., Mobile, Ala. Manufacturers. 

Believe that the law of supply and demand should rule and market 
not made subject to artificial influence. Practice would cause ad- 
vance in price if such contracts would commit buyer to one year's 
requirements and preclude possibility of his being sold by other con- 
cerns, a circumstance that would encourage competitors to raise 
prices to level set by those who give guarantee. Lumber manufac- 
turers can not give such protection as all articles contributing to 
final cost are bought in current market and labor expense is not 
stable. 

R. W. Wier Lumber Co., Houston, Tex. Jobbers. 

Buy in open market and do not guarantee customers against de- 
cline. Such practice unsound and uneconomical. 

MACHINERY. 

Smith-Courtney Co , Richmond, Va. Manufacturers and Jobbers. 

Believe that distributors should make purchases based upon their 
estimated requirements upon which they should calculate fair profit 
and not look to manufacturer for protection should prices decline. 
Guarantee encourages speculative buying. 



48 

MILLING. 
American Corn Millers' Federation, Chicago, 111. Trade Association. 

Following resolution unanimously adopted : 

"Opposed to practice of guarantee in prices against decline and 
favor such legislation as will prohibit." 

Arcady Farms Milling Co., Chicago, 111. Millers. 

Through Winston. Strawn & Shaw, of Chit-ago, above firm ex- 
presses opinion that guarantee is against the. public interest, tends 
to keep up the cost of living, and ought to he discontinued. Under 
such competition some concerns are unwillingly drawn into custom. 

El Reno Mill & Elevator Co., E" Reno, Okla. Millers. 

Practice unfair ami do not believe followed by many flour millers. 
Wheat not bought with guarantee. Consumers interest better served 
if guarantee not given. 

Kansas Milling Co., Wichita, Kans. Millers. 

Regards as bad practice and not practical in milling and grain 
business. Millers obliged to buy grain regardless of market's ac- 
tion. Guarantee tends to hold up prices. 

Millers' Milling Co., Enid, Okla. Mil'ers. 

In general terms expresses disapproval of practice and relates 
fact that as Secretary of the Oklahoma Millers' Association, seven 
years ago. succeeded m gelling 87 per cent of Oklahoma millers, 
60 per cent of Kansas and Nebraska and :)7 per cent of Texas millers 
to sign agreement that practice would not be followed. 

Nebraska Millers' Association, Omaha, Nebr. Trade Association. 

Regards as a pernicious practice amounting to gambling. Should 
be discountenanced by Government. Association adopted resolution 
January 20, L920, in opposition to practice. 

Nowak Milling Co., Hammond. Ind. Millers. 

Not able to purchase raw materials with such guarantee and 
therefore opposed to granting such concession to its customers. Re- 
gards as speculative and unsound. However, in order to meet such 
competition, have at times been obliged to extend courtesy. States 
that American Feed Manufacturers' Association at last convention 
agreed to discontinue practice. 

Oklahoma Millers' Association, Oklahoma City, Okla. Trade Association. 

With 95 per cent of mills represented, Oklahoma Millers' Associa- 
tion adopted resolution in opposition to practice. 
M. C. Peters Mill Co., Omaha, Nebr. Millers. 

A malicious practice, substituted for the ekercise of better buying 
judgment, in which purchaser has all the advantage. .Manufacturers 



49 

of by-product mixed feeds, who largely set their prices, have fol- 
lowed the practice without harm to business, but in the manufacture 
of mixed feed products, Where raw ingredients are subject to supply 
and demand, practice is dangerous. Manufacturer who guarantees 
obliged to arrange for excessive supply of raw materials, creating 
artificial demand and tending to lead to control of market. 

Southeastern Millers' Association, Nashvil'e, Tenn. Trade Association. 

Regards as unfair practice and has tried for some time to uproot 
evil. 

Westbrook Grain & Milling Co., Pine Bluff, Ark. Millers. 

From standpoint of good business practice do not see how manu- 
facturer, regardless of financial ability, is able to extend guarantee 
unless able to control the price of liis raw materials. 

MOLASSES AND SIRUPS. 

Penick & Ford (Ltd.), New Orleans, La. Manufacturers. 

Disapprove of such method of merchandising as it would tend to 
increase rather than diminish cost to consumer and would place 
weapon in hands of large manufacturers to the detriment of smaller 
manufacturers. 

NUTS. 

Barnhart Mercantile Co., St. Louis, Mo. Jobbers. 

Until a few years ago guarantee practice was general, but found 
to be pernicious. National Peanut Cleaners & Shellers Association 
adopted rule prohibiting on the ground that such guarantee was an 
unfair method of doing business. Leads jobbers to buy in large 
quantities as pure speculation. If prices advance, they secure addi- 
tional profit; and if prices go down, the original dealer's guarantee 
protects them. Large orders sometimes bring about short selling by 
original dealers, projecting them into the buying market with re- 
sult of increase in prices, which increase is passed on to the whole- 
sale distributors of nuts. Operates to distinct advantage of dealers 
with large capital and extensive lines of credit. Creates indisposi- 
tion on part of guarantor to permit, if he can prevent, a recession of 
prices. 

OIL AND PETROLEUM. 

Independent Oil Men's Association, Chicago, 111. Trade Association. 

Opinions of 47 firms have been submitted to this Association, 32 
opposed to and 15 in favor of the practice. Analysis indicates that 
the small dealer is almost unanimously against the custom. Re- 
finers do not extend such privilege to small jobber, but do execute 



50 

such contracts with large jobbers, thereby placing small jobber at 
disadvantage not only in the buying end, but also in the selling field. 
Practice manifestly unfair. Enables large competitors to make 
clear diagnosis of future conditions. Matter ought to be decided 
definitely for benefit of legitimate business. 
National Petroleum Association, Cleveland, Ohio. Trade Association. 

Petroleum industry does not guarantee against decline in price. 
Does not regard as businesslike. In fairness to both parties to con- 
tract, prices should be subject to market fluctuations. 
Puente Oil Co., Los Angeles, Calif. Producers and Refiners. 

Guarantee pernicious practice and not in keeping with good busi- 
ness. Unless seller deals in speculative commodity and able at times 
to make favorable purchases, unable to recoup if guarantee is ac- 
corded. Emphatically a disadvantage to small operators. 
Union Oil Co. of California. Producers and Refiners. 

Does not give guarantee. Business done on annual-contract basis 
at specified price, subject to no readjustment. 
Waverly Oil Works Co., Pittsburgh, Pa. Refiners. 

A demoralizing practice, which gives potent weapon to big manu- 
facturers, particularly those controlling raw materials, to use against 
small manufacturers who are dependent on raw material at market 
prices. 

OVERALLS. 

Sweet-Orr & Co. (Inc.), New York, N. Y. Manufacturers. 

Guarantee increases expense of distribution, encourages jobbers to 
buy speculatively, and creates shortage in manufacturing market, 

PAINT AND VARNISH. 

Boydell Bros. White Lead & Color Co., Detroit, Mich. Manufacturers. 

Does not approve guarantee and tries to obviate necessity for in- 
auguration of such practice by having .salesmen caution customers 
not to overload. 
Eberson-Lindsley Paint Co., St. Louis, Mo. Manufacturers. 

Guarantee only to date of shipment. 
Louisville Varnish Co., Louisville, Ky. Manufacturers. 

Regards practice as unsound but makes no further statement. 
Benjamin Moore & Co., St. Louis, Mo. Manufacturers. 

Regards as unfair competition and believes should be prohibited by- 
law, as neither seller nor buyer gains anything. 
O'Brien Varnish Co., South Bend, Ind. Manufacturers. 

Imposes assumption of uncertain liability and therefore makes 
accurate calculations impossible. At all times customers average two 



51 

months' supplies of their paints on hand, representing about one- 
sixth of annual production, a proportion too large for taking such 
burden. Expense of guarantee could of course be absorbed in selling 
price, but do not believe such practice fair to consumers. 
Pecora Paint Co., Philadelphia, Pa. Manufacturers. 

Detrimental to business generally, and even though manufacturer 
would be protected on some raw materials he had purchased there 
would be some portion of his stock not subject to guarantee, which 
he would be obliged to sell at lower sum than justified by price at 
which purchased. As applied to guarantee against own reductions on 
undelivered part of contract, believe would be fair to so protect 
jobber. 
Sewall Paint & Glass Co., Kansas City, Mo. Manufacturers. 

Can only result in unsettling business. 
Sherwin-Williams Co., Cleveland, Ohio. Manufacturers. 

Expresses opinion that guarantee is economically unsound. 
Robert Shoemaker & Co., Philadelphia, Pa. Manufacturers. 

Beyond statement that is opposed to practice does not make com- 
ment. 
True-Tagg Paint Co., Memphis, Tenn. Manufacturers. 

Opposed to practice but makes no other comment. 
Wadsworth, Howland & Co. (Inc.), Boston, Mass. Manufacturers. 

Price guarantee not founded on sound business principles and op- 
erates to force competitors to resort to same practice. 

PAPER. 

Eaton-Dikeman Co., Lee, Mass. Manufacturers. 

Do not guarantee prices. At present do not sell for delivery be 
yond 30 days. 
Robert Gair Co., Brooklyn, N. Y. Manufacturers. 

Guarantee does not harmonize with rudiments of business. Can 
not conceive of seller pursuing practice unless possessed of gambling 
temperament. 
Hartford City Paper Co., Hartford City, Ind. Manufacturers. 

As manufacturers can not control prices of raw materials and as 
jobbers would object to contract permitting manufacturer to increase 
price; believe practice too one-sided to be sound. Manufacturing 
concern not granting concession could deliberately quote lower price 
to jobber in order to disturb relations between manufacturer who 
guarantees and his customer. 
Lawrence Paper Manufacturing Co., Lawrence, Kans. Manufacturers. 

Believes unfair practice and no need for same in their line. 
184400—20 4 



52 

John Strange Paper Co., Menasha, Wis. Manufacturers. 

Practice unfair and unbusiness like. 

PAPER BOXES. 
Columbia Box Board Mills (Inc.), Chatham, N. Y. Manufacturers. 

Believes a great abuse. At variance with sound business princi- 
ples and works hardship upon manufacturers. Expresses hope that 
practice may be declared unlawful. 

Continental Paper Co., Bogota, N. J. Manufacturers. 

Believes absurd practice and hopes Commission will rule against. 
Gardner & Harvey Co., Middletown, Ohio. Manufacturers. 

Do not believe sound policy, as in time of great decline might 
mean bankruptcy for concerns extending such concession. Not able 
to buy its raw material on such basis. 

Smeallie & Voorhees, Amsterdam, N. Y. Manufacturers. 

Manufactures paper box boards. Expresses opposition to guar- 
antee but does not give any reasons. 

Western Paper Box Co., San Francisco, Calif. Manufacturers. 

Can not and does not give guarantee. Most orders taken subject 
to price at time of delivery. 

PAPER ROOFING. 
Richardson Paper Co., Cincinnati, Ohio. Manufacturers. 

One of the worst evils in American business. Nothing could 
induce us to resort to such weak policy, although very trying to 
meet such competition. During times of brisk demand practice 
not so injurious, but when output exceeds current demand injects 
artificial influence in market. Causes waste of material and is dis- 
astrous to wage earners. 

PEANUTS. 

National Peanut Cleaners & Shellers' Association, Trade Association. 

Suffolk, Va. 

Association adopted resolution in opposition to guarantee. 
PLUMBERS' SUPPLIES. 

N. O. Nelson Manufacturing Co., Memphis, Tenn. Manufacturers. 

Manufacturers should not be called upon to give such protection, 
as their raw materials are purchased in open market. Unless manu- 
facturers able to secure similar protection results in loss to them. 
Do not believe practice results in saving to consumers. Encourages 
speculative buying. 



53 

SALT. 

Diamond Crystal Salt Co., St. Clair, Mo. Manufacturers. 

Experience indicates bad method of doing business. Would create 
liability on which there is no way to estimate and would result in 
careless buying. 
Union Salt Co., Cleveland, Ohio. Manufacturers. 

Excejrt as applied to a concern's own prices and only to date of 
shipment, believe practice a dangerous one, especially as it affects 
smaller concerns. 
Worcester Salt Co., New York, N. Y. Manufacturers. 

If subsequent to sale to jobber, prices declined before shipment of 
order had been completed, give jobber advantage of reduction to 
enable him to meet competitor, but think very poor business policy 
to rebate for goods on hand. 

SAWS. 

E. C. Atkins & Co., Indianapolis, Ind. Manufacturers. 

Do not make shipments with guarantee. This method exceedingly 
dangerous, unfair, and unbusinesslike. During period of price ad- 
vances jobbing trade and dealers take advantage of advance. Profit 
secured in that manner sufficient to reimburse for losses on falling 
market. Manufacturer in no position to stand as buffer against loss. 
If manufacturer guaranteed unsold stocks in hands of dealers, lach 
of caution on part of dealers would involve manufacturers in un- 
told obligations. Principle wasteful and encourages loose business 
practices. Practice operates against manufacturers of small re- 
sources and against those who have more costly labor understandings 

SHOES, RUBBER. 

Converse Rubber Shoe Co., New York City, N. Y. Manufacturers. 

Believes guarantee violates fundamental business principle. After 
title to goods passes from seller to buyer does not believe price read- 
justment should be made. Produces careless buying and ties up un- 
necessarily large stocks in hands of dealers. 

SOAP. 

West Coast Soap Co., Oakland, Calif. Manufacturers. 

Have recently withdrawn such protection and believe practice 
should be prohibited by law. Encourages jobbers, at expense of 
manufacturers, to make heavy purchases with speculative intent, 
and the existence of such large stocks under guarantee acts as a par- 
tial bar to new enterprises coming into the market. This effect upor 
new enterprises constitutes stifling of competition. 



54 

SOLDER. 

Solder Manufacturers' Association, New York, N. Y. Trade Association. 

At last general meeting of above Association, members expressed 
opinion that the guarantee against decline constituted a pernicious 
practice and resulted in unfair competition. 

TACKS. 
Atlas Tack Co., Fairhaven, Mass. Manufacturers. 

Our belief that practice detrimental to public interests. Tends to 
high prices and buyers so protected order beyond needs and make 
no effort to secure lower prices. Where this practice is in vogue 
manufacturers rarely, if ever, make purchaser voluntary quotations. 
Manufacturers who give guarantee resist in every way decline in 
prices. Absence of guarantee brings greater caution and intelligence 
in buying. 

Roberts Corporation, Whitman, Mass. Manufacturers. 

Regards as unfair competition and does not practice, 

TIN PLATE. 
Association of Tin Plate Manufacturers, Pittsburgh, Pa. Trade Association. 

After thorough discussion, officers of this Association instructed 
that it is the firm conviction of its members that practice is vicious 
and detrimental. No good reason why manufacturer should assume 
further responsibility after making sale in good faith and on ac- 
ceptable terms. Practice is inimical to best interests of those will- 
ing to back business judgment with their own money. It places 
premium upon ignorance, inexperience, and incompetency, and en- 
courages expansion beyond financial resources. No question but 
practice encourages speculation. Believe it encourages newcomers 
to attain in brief time position it has taken others years to attain. 

Carnahan Tin Plate & Sheet Co., Canton, Ohio. Manufacturers. 

A disastrous habit, sometimes resulting in loss of dividends to 
stockholders of manufacturing concerns. Successful business ought 
to be on solid foundation and not bolstered up through guarantee. 

National Association of Sheet & Tin Plate Manufacturers, Trade Association. 
Pittsburgh, Pa. 

By resolution adopted January 6, 1920, this Association went on 
record in opposition to guarantee, expressing belief that it placed 
undue burden on seller, resulting in overbuying and speculation on 
part of purchaser, undermines confidence, is unfair competition, not 
good business practice, and subversive of the fundamental principle 
of contracts, and generally harmful. (Submitted pamphlet contain- 
ing written expression from some of its members in opposition to 
practice.) 



55 

TIRES. 
Hawkeye Tire & Rubber Co., Des Moines, Iowa. Manufacturers. 

Now executes contracts with guarantee for period of 90 clays from 
date of invoice. Guarantee encourages reckless buying and tends 
to hold up prices. Such contracts are a contingent liability to man- 
ufacturer, and whatever losses ensue must be taken into cost of pro- 
duction. Stifles competition to the extent that old and powerful 
companies may exclude prospective newcomers from the field. For 
illustration: If price declines and rebate is given on goods sold by 
manufacturer during the year 1918, and such goods are still on hand 
in 1919, rebate could properly be treated as a loss accruing during 
the conduct of business in 1918, and would therefore be subject to 
an amended return and claim for refund of tax, entailing a loss to 
the Government. Recent decline in tire prices was openly talked 
about in the trade, and charged to the intention of larger companies 
displacing smaller ones. If practice is prohibited will have imme- 
diate effect of reducing prices and toning business generally. 

Republic Rubber Co., Youngstown, Ohio. Manufacturers. 

Practice injurious to trade and carries no benefit for public. 
Lever by which large manufacturers may assume control of market 
to disadvantage of smaller units. Tremendous rebates paid in past 
a heavy burden i;pon business, an obligation too great for small 
manufacturers to bear. 

TYPEWRITER RIBBONS. 

BestwaU Manufacturing Co., Chicago, III. Manufacturers. 

Manufacturer forced into position of maintaining high prices, 
even against his wish. Public suffers from such guarantee. Prac- 
tice encourages speculation on part of jobbers. 

MISCELLANEOUS. 

Geo. M. Bentley Co., Boston, Mass. Manufacturers' Agents. 

Eegards as economic waste and demoralizing to proper conduct of 
business. The amount guaranteed is actually added to cost of pro- 
duction and passed on to consumer. Encourages merchants to buy 
for speculative purposes and does not call for exercise of good busi- 
ness judgment in fixing volume of purchases. Also causes discrimi- 
natory favors to important distributors through the payment of 
rebates in excess of sum actually due them. Experience indicates 
this latter a prevalent custom. Exerts a demoralizing influence on 
business ethics. Practice frequently delays reduction of prices and 
public suffers to such extent. Expresses hope that custom may be 
made illegal in view of trade's inability to compel such reform. 



56 

Elggren Bros. & Co., Salt Lake City, Utah. Wholesalers. 

Practice unfair and should be prohibited by law. 

Fred Fear & Co., New York, N. Y. Manufacturers of Novelties. 

Practice unjust to manufacturers and operates to advantage of 
large corporations who carry big surplus and can afford to extend 
guarantee. Encourages jobbers to speculate instead of basing pur- 
chases on best judgment. 

JohnW. Hall, Chicago, 111. Manufacturer's Agent. 

Sells lard compound; does not give guarantee and finds it difficult 
to sell against concerns of large capital that are able to accord this 
concession. 

Lamp Standardization Exchange, New York, N. Y. Trade Association. 

By vote of members of above-named Exchange this organization 

has gone on record as opposed to guaranteeing against price decline. 

Marden, Orth & Hastings Corporation, Manufacturers and Exporters. 

New York, N. Y. 

Have had to contend with this vicious practice for years and be- 
lieve should be declared illegal. 

National Federation of Construction Industries, Trade Organization. 

Philadelphia. 

Practice was formally rejected by this organization as imprac- 
ticable. 

Sulpho-Napthol Co., Boston, Mass. Manufacturers. 

Unsound economical!} 7 and an encouragement to overbuy, creating 
artificial shortage in manufacturer's market. However, in seasonal 
goods, can see necessity for such practice. 



NONCOMMITTAL REPLIES. 



CONTAINERS. 



Columbia Package Co., Memphis, Tenn. Manufacturers. 

Does not pursue practice. Sells at price on date of delivery. 

COTTON MILLS. 

Fuller E. Callaway, La Grange, Ga. Manufacturer's Agent. 

Cotton mills we represent do not guarantee prices, in belief that 
it is detrimental in periods of inflation. When trade is dull, in cer- 
tain lines of business, it may be expedient to grant such concession. 
Believe to be a matter that should be determined by heads of each 
particular business. 

HARDWARE. 

Todd-Donigan Iron Co., Louisville, Ky. Jobbers. 

Do not purchase with guarantee. Manufacturers stopped practice 
long since. 

HARDWOOD. 

Michigan Hardwood Manufacturers' Association, Trade Association. 

Cadillac, Mich. 

Do not believe practice resorted to by hardwood manufacturers 
nor is it believed to be practicable. 

Northern Hemlock & Hardwood Manufacturers' Associ- Trade Association, 

ation, Oshkosh, Wis. 

Manufacturers in this industry do not give such guarantee and 
Association not interested in subject. 

LIVE STOCK. 
Omaha Livestock Exchange, Omaha, Nebr. 

Practice not followed in their business. 
MACHINERY. 
Mil! & Mine Supply Co., Akron, Ohio. Jobbers. 

Practice followed in lines where jobbers must be encouraged to 
carry adequate stocks to care for trade. Loss falls upon ultimate 
consumers. 

(57) 



58 

PAPER. 
Philadelphia Paper Manufacturing Co., Philadelphia, Pa. Manufacturers. 

Never found necessary to sell goods on such basis and practice not 
folio-wed in this industry. 

STOVES. 
Michigan Stove Co., Detroit, Mich. Manufacturers. 

Does not give guarantee. Recently its salesmen have been per- 
mitted to take orders and assure delivery at reasonable advance date 
at specified prices. 

TEXTILES. 
American Textile Co., Atco, Ga. Manufacturers. 

Have never guaranteed prices. All contracts at fixed price whether 
for spot or future delivery. 

VULCANIZED FIBER PRODUCTS. 
Campbell Fibre Co., Stanton, Del. Manufacturers. 

Does not reply to specific inquiry, but expresses following view : 
That Government should regulate all prices. Predicates this view 
upon observation that competition at times becomes destructive. 

WIRE ROPE. 

John A. Roebling's Sons Co., Trenton, N. J. Manufacturers. 

Our products mainly furnished on special order, not requiring the 
maintenance of stocks either in our own possession or in hands of 
agents. 



FAVORABLE REPLIES, WITH RESERVATIONS. 



AGRICULTURAL IMPLEMENTS. 

Thomas Manufacturing Co., Springfield, Ohio. Manufacturers. 

When trade conditions unsettled believe users of raw material 
should be protected against decline, as applied to undelivered por- 
tion of any contract. Facilitates continuous operation of factory and 
gives manufacturer more intelligent look into the future. In normal 
times no need for such practice. 

CRANBERRIES. 

American Cranberry Exchange, New York, N. Y. Jobbers. 

There is a custom among shippers and manufacturers of perishable 
or nonperishable products to guarantee prices. Believe practice 
tends to stabilize market, increase volume of business, and estab- 
lish confidence, also lessening spread of prices between producer and 
consumer. Dealers can work on closer margin, but if subject to 
loss due to decline of market they are required to get sufficient profit 
to equal loss that might occur in market decline. On other hand, 
observation is that shippers and manufacturers generally establish 
higher prices to enable them to guarantee price. Our association 
deals entirely with fresh fruit and can not guarantee against decline. 
We try to fix price that will consume whole crop while in prime 
condition. 

HARDWARE. 

Dunlap Hardware Co., Macon, Ga. Jobbers. 

At present time on account of delayed shipments believe that man- 
ufacturer should accord guarantee to date of shipment, but do not 
stress need in normal times. 

Fox Bros. Hardware Co., Pine Bluff, Ark. Jobbers. 

Seasonal goods should be purchased under guarantee, but do not 
see how manufacturer, as a rule, could give guarantee in face of ad- 
vancing market. 

(59) 



60 

Teague Hardware Co., Montgomery, Ala. Jobbers. 

Favors in abnormal times. In normal times would not favor guar- 
antee, but in these abnormal times believe that guarantee is justified 
in view of unusual fluctuations, long delays in transit, and shortage 
of production. 

MACHINE TOOLS. 

National Machine Tool Builders' Association, Trade Association. 

Worcester, Mass. 
Following the Armistice, fearing disturbed business conditions 
some jobbers could not be encouraged to buy without guarantee, 
which did not extend beyond six months. Practice is not now fol- 
lowed in this trade and is not believed to be good business. 

PAINT. 
Lowe Bros. Co., Dayton, Ohio. Manufacturers. 

Do not approve except as applied to goods sold for future delivery, 
where manufacturer's convenience is served by permitting more 
continuous and economical factory operation. By this means job- 
bers are assured adequate stocks. Paint is a seasonal commodity 
and we feel that the jobber should be protected, at least until the 
time when his demand commences. As applied to commodities the 
price of which can not be controlled by manufacturers the practice 
would be dangerous to manufacturers, unfair to competitors who 
did not give guarantee, and would encourage reckless buying. On 
exclusive agency articles do not believe practice would result in harm. 

WINDMILLS— GAS ENGINES. 

Baker Manufacturing Co., Evansville, Wis. Manufacturers. 

Secures guarantee on raw materials. Price guarantee encourages 
purchase of adequate future supply raw materials and makes for 
capacity operation of plant. If such protection were not afforded 
doubt that season's requirements would be purchased in one order. 

The Baker Co. has not extended similar privilege to its customers, 
indicating that their supply is at all times sufficient to accomplish 
the prompt filling of orders. 



ALPHABETICAL LIST OF INDIVIDUALS, FIRMS, CORPORATIONS, AND 
COMMERCIAL AND TRADE ASSOCIATIONS. 



Replies favoring guarantee against price decline. 

Page. 

Advance-Rumely Co 20 

Ainslie-Martin Co. (Inc.) 20 

Albany Hardware & Iron Co 'jfi 

Allen & Jemison Co 20 

Allied Machinery Co. of America-- 28 

American Seeding Machine Co 7 

American Wire Fabrics Co :!:: 

Anniston Hardware Co 20 

Anthony Wholesale Grocery Co 11 

Appleton Mfg. Co 7 

Armstrong Paint & Varnish Works _ 29 

Atlanta Wholesale Grocers 11 

Avery & Sons Co., D. F 7 

Babcock, Hinds & Underwood (Inc.) 27 

Baker Co., A. D 7 

Baker Food Products Co 10 

Baker & MacDowell Hardware Co 2i> 

Baldwin & Co., A 20 

Banks Supply Co 28 

Barker, Rose & Clifton Co 21 

Barnes Grocer Co 11 

Beckman Co 35 

Bedford, E. T 2!> 

Beeman Tractor Co 7 

Bell-Wayland Co J 1 

Benjamin Electric Mfg. Co 27 

Bey & Co., John N 11 

Blaul's Sons Co., John 12 

Blooraington Wholesale Grocery Co - 12 

Boniface, Weber & Allen 12 

Bright & Co :) 

Bronson & Townsend Co 21 

' Brown-Rogers Co 21 

Brown-Wales Co 2fi 

Buckley-Terry Co 12 

Bushnell Co., F. C 12 

Calhoun Grocery Co 1? 

California Walnut Growers' Association 35 

Callahan Co., C 12 

Carey Co., The Philip 3S 

(61) 



62 

Page. 

Case Plow Works Co 7 

Challoner Co 7 

Chapman & Banks Co 21 

Charlotte Hardware Co 21 

Citizens' Gas Co 11 

Cleveland & Sons, William D 12 

Clifton Manufacturing Co "4 

Cole Manufacturing Co 29 

Columbia Tool Steel Co 26 

Columbus Grocery Co 12 

Colvin, Atwell & Co 13 

Conneaut Shovel Co., The 34 

Cooper-Dickinson Grocer Co 13 

Corpus Christi Hardware Co 21 

Crancer Hardware Co 21 

Crook, J. W 13 

Crown Overall Manufacturing Co 29 

Crumley-Sharp Hardware Co 21 

Cyler & Mohler 33 

Dabney Bros 13 

Deere & Co 8 

Dempster Mill Manufacturing Co 8 

De Soto Paint Manufacturing Co 30 

Deutz & Bro., A 21 

Dinkins-Davidson Hardware Co 21 

Doherty Hardware Co. (Ltd.) 22 

Douglas & Evans 35 

Estes Lumber Co 27 

Fairbanks Co 36 

Farrand, George E 36 

Paucette Co 13 

Federated Merchants 13 

French & Hecht 26 

Gilbert Grocery Co 13 

Gloster Lumber Co 28 

Goddard Grocer Co 13 

Goodell-Pratt Co 26 

Grafe Co., A 13 

Griffin Cantrell Hardware Co 22 

Griffin-Goodner Grocery Co 14 

Griffin Manufacturing Co , 22 

Hamersley Manufacturing Co 31 

Hardwicke-Etter Co 29 

Harper & Mclntire Co 22 

Harron, Rickard & McCone 28 

Havana Metal Wheel Co 26 

Heisig & Norvell 14 

Herscht'l Manufacturing Co., R 8 

Houston Co., James W , 14 

Huey & Philip Hardware Co 22 



63 

Page. 

Illinois Wholesale Grocers' Association 14 

Illinois Wire & Manufacturing Co 26 

Indiana Wholesale Grocers' Association 14 

Interstate Hardware & Supply Co 22 

Iowa-Nebraska-Minnesota Wholesale Grocers' Association 1 15 

Jett & Wood 15 

Jones Co., A. B 36 

Keith, Simmons & Co 22 

Kelley Axe Manufacturing Col 36 

Kentucky Wholesale Co 15 

Kerr & McCord 36 

Knapp & Spencer 23 

Krakauer, Zork & Moye's Successors (Inc.) 23 

Lakewood Engineering Co 36 

Lansing Silo Co 34 

Lauderdale Cotton Mills 9 

'Lee Hardware Co. (Ltd.) 23 

Lewis Mill Supply Co 23 

Libby, C. A 36 

Lockett & Co., A. M 28 

Los Angeles Grocery Co 15 

Louisville Paint, Oil & Varnish Club 30 

Lynd, J. E 15 

McClung Co., C. M 23 

McClureCo 34 

McLenden Hardware Co 23 

Mahon Co., Samuel 15 

Malone & Hyde 15 

Martin Steel Products Co - 26 

Mennen Co 34 

Miller Co., C. M .__. 16 

Monroe Hardware Co 23 

Moore Dry Goods Co., Wm. R 10 

Moore Plow & Implement Co 8 

Moore-Shenkberg Grocery Co 16 

Moore's Sons (Inc.), A. P 16 

Mountain Grove Creamery 25 

Mullen Co., William D 16 

Murchison & Co., J. W 23 

National Grocery Co 16 

National Wholesale Druggists' Association 9 

Nevin Co., T. H. 30 

New England Chain Works 27 

New-Way Motor Co -' 11 

Niles & Scott Co 27 

Nixon Hardware Co 23 

Norton Hardware Co 2:'. 

Odell Hardware Co 24 

Oklahoma Wholesale Grocers' Association 16 



64 

Page. 

Oliver-Finne Co 10 

Oppenheim, Oberndorf & Co 33 

Owensboro Wagon Co 8 

Pacific Pipe & Supply Co 33 

Patterson Mercantile Co., L 17 

Penick-Hughes Co 24 

Perfect & Co., A. H 17 

Powell-Sanders Co 17 

Purinton & Smith 28 

Queen City Supply Co 28 

Radford Grocery Co., J. M 17 

Rapides Grocery Co. (Inc.) 17 

Reeve, M. E 17 

Richardson & Co., W. 11 24 

Ridenour-Baker Grocery Co 18 

Riggs, J. H 18 

Roanoke Hardware Company (Inc.) 24 

Rowe Co., J. W 18 

Russell Hardware Co 24 

St. Louis Iron Store Co 27 

Sales Extension Co 18 

Saunder's Sons Co IS 

Schmidt & Ault Paper Co 31 

Scovel Iron Stove Co 37 

Seidlitz Varnish Co 3(> 

Sentney Wholesale Grocery Co 18 

Sloane & Co., Samuel 33 

Smith, Kline & French Co 9 

Southern Georgia Grocery Co 1!» 

Southern Plow Co 8 

Southern Supply & Machinery Dealers' Association 28 

Southern Wholesale Dry Goods Association 10 

Sterling Hardware Co 24 

Stone Tool & Supply Co - 27 

Siraud-Dockum Grocery Co 1!) 

Street & Co., E. S 19 

Swayne, Robinson & Co 8 

Swind Machinery Co 28 

Tatum Hardware Co., W. M 24 

Thompson-Miller Hardware Cu 24 

Thum Co., O. & W 1 1" 

Tidewater Wholesale Grocers Association- 19 

Tips Co., Walter 25 

Towers & Sullivan Manufacturing Co. ._ 8 

Townley Metal & Hardware Co 25 

Tucker & Goodwin 19 

Tullis-Gamble Hardware Co 25 

Tyler Grocery Co 19 

Tyler & Simpson Co 19 



65 



Page. 



Ullmann, Stem & Krausse 19 

U. S. Gutta Percha Paint Co 30 

U. S. Wind Engine & Pump Co 37 

Wagner Hardware Co 25 

Warrensburg Canning Co 9 

Wash, Davie & Co 19 

Watkins-Cottrell Co 25 

Weed & Co., J. D L_ 25 

Western Steel & Irons Works 27 

Wiles Grocery Co 20 

Wilson Hardware Co., E. L 25 

Wimberly & Thomas Hardware Co 25 

Winona Wagon Co 8 

Woolsey Paint & Color Co., C. A . 31 

Writing Paper Manufacturers' Association 31 

Replies opposing guarantee against price decline. 

Almond Manufacturing Co., T. K 45 

American Coffee Co 40 

American Corn Millers' Federation 4S 

American National Live Stock Association, Market Committee of. 47 

Arcady Farms Milling Co 48 

Aspegren & Co 42 

Association of Tin Plate Manufacturers 51 

Atkins & Co., E. C 53 

Atlanta Refining & Manufacturing Co j. 42 

Atlantic Dyestuff Co : 42 

Atlas Cereal Co 30 

Atlas Tack Co - 54 

Baker- Vawter Co 42 

Barnhart Mercantile Co 40 

Bentley Co., Geo. M 

Berkshire Knitting Mills- ... . . . _ 44 

Bestwall Manufacturing Co-, 55 

Black, Varian & Simon (attorneys for certain glycerine manufacturers) 43 

Bolt, Nut & Rivet Institute 45 

Boydell Bros. White Lead & Color Co 50 

Butterworth-Judson Corporation 39 

Carnahan Tin Plate & Sheet Co 54 

Champion Tool Co 38 

Coleman-Clark Grocery Co 43 

Columbia Box Board Mills (Inc.) 52 

Columbian Rope Co 41 

Continental Paper Co 52 

Converse Rubber Shoe Co 53 

Cooper Co., C. W 43 

Cotton Thread Manufacturers' Exchange 41 



66 

Page. 

Deal Saw Mills Co 47 

Detroit Range Boiler & Steel Barrel Co 45 

Diamond Crystal Salt Co 53 

Dikeman Manufacturings Co 45 

Drill & Reamer Society 45 

Eagle & Phenix Mills 41 

Katon-Dikeman Co 51 

Eberson-Lindsley Paint Co 50 

Eclipse Manufacturing Co 38 

Elggren Bros. & Co 56 

El Reno Mill & Elevator Co 48 

Fageol Motors Co 38 

Fear & Co., Fred 56 

Gair Co., Robert 51 

Gardner & Harvey Co 52 

Hagy Waste Works, J. Milton 41 

Hall, John W 56 

Hartford City Paper Co 51 

Hawkeye Tire & Rubber Co 55 

Haywood Alfalfa Warehouse Co 38 

Henkle & Joyce Hardward Co 43 

Hudson Motor Specialties Co 38 

Independent Oil Mens' Association 49 

Johnson Electric Supply Co 42 

Kansas Milling Co 48 

Kingwell Bros 39 

Knit Goods Manufacturers of America 46 

Lamp Standardization Exchange 56 

Lawrence Paper Manufacturing Co 51 

Lorick & Lowrance 43 

Louisville Varnish Co 50 

MaeGowan Coffee Co. (Inc.) 40 

Marden, Orth & Hastings Corporation 56 

Maury-Cole Co 40 

Memphis Milling Co 42 

Mid-West Box Co 39 

Millers' Milling Co 48 

Mill hell- Powers Hardware Co 44 

Moore & Co., Benj 50 

Mulford & Co., H. K 39 

National Association of Sheet and Tin Plate Manufacturers 54 

National Federation of Construction Industries 56 

National Peanut Cleaners and Shelters' Association 52 

National Petroleum Association 50 

Nebraska Millers' Association 48 



67 

Tage. 

Nelson Hardware Co 44 

Nelson Manufacturing Co., N. O 52 

New Jersey Cloth Co 40 

Nowak Milling Co 4S 

O'Brien Varnish Co 50 

Ohio Falls Iron Co - I - 

aa Millers' A on -1* 

olson Coffee Co 10 

Otis Hidden Co 15 

Paterson S Edej Lumber Co 47 

Pecora Paint Co . 51 

iVilin Iron & Steel Co 43 

Penick & Ford (Ltd.) , 4!) 

Mil] Co., M. C 4S 

Phez Co 4i> 

Plymouth Cordage Co 41 

Puente Oil Co 50 

Purity Oats Co 4:; 

Republic Rubber Co 55 

Richardson Paper Co 52 

Richmond Hosiery Mills 44 

Riesener Chocolate Co : 39 

Roberts Corporation, G. G 54 

Root Co., The A. I •___. .. 41 

Rosenberg Bros. & Co 44 

Rugg & Co., E. T __ li 

Sechler Implement & Carriage Co., D. M 40 

Sewall Paint & Gia Co .51 

Sherwin-Williams Co 51 

er & Co., Robert .__ 51 

Smeallie & Voorhees 52 

Smith & Co., Albert D 42 

Courtney Co 47 

Southern Cum Mills (Inc.) 43 

tstern Millers' Association 49 

Solder Mfrs.' Association 54 

Stockton Box Co 39 

Strange Paper Co., John 52 

Summers Hardware Co 44 

Sweet-Orr & Co. (Inc.) 50 

Sulpho-Nathol Co 50 

Taylor Company, H. D 46 

Trimont Manufacturing Co 46 

True-Tagg Paint Co 51 

Tubhs Cordage Co 4t 

Union Oil Co. of California 1 50 

Union Manufacturing Co 44 

Union Salt Co 53 

184460— 20 5 



68 

Page. 

Wadsworth, Howland & Co. (Inc.) 51 

Waverly Oil Works Co 50 

WVsi Coast Soap Co .. 53 

Weatbrook Grain & Milling Co — 49 

■ ni Paper Bos Co 52 

Western Shade Cloth Co. - - 40 

Whitlock Cordage Co -, 41 

Wier Lumber Co., R. W -17 

Worcester Salt Co — — 53 

'. oni ommittal replies in 

American Textile Co 58 

Callaway. Fuller E 57 

Campbell Fibre Co 58 

Columbia Packa e Co 57 

Michigan Hardware Mfrs.' Association 57 

Michigan Stove Co 58 

Mill & Mine Supply Co. - 57 

Northern Hemlock & Hardwood Mfrs.' Association 57 

Omaha Livestock Exchange 57 

Philadelphia Paper Mfg. Co 5s 

Roebling's Sous Co., John A 58 

Todd-Donigan Iron Co 57 

Favor guarantee against pi ic< di • liiu . u ith resi n uti'ins. 

rican Cranberry Exchange 59 

Baker Mfg. Co 00 

Dunlap Hardware Co 5:: 

Fox Brothers Hardware Co 50 

Lowe Bros. Co 00 

National Machine Tool Builders' Association 60 

ue Hardware Co 00 

Thomas Manufacturing Co 59 



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